Equities April 07, 2020 / 01:56 pm UTC

U.S. Chart: Jun S&P 500 (E-Mini) Update - Breaking Higher

By Mike Macdonald



Levels
Imp
Comment


Levels
Imp
Comment
R4
2907

March 9 high

S1
2636

Break level
R3
2858

March 11 high

S2
2485
*
April 6 low
R2
2786
**
50% from February 20

S3
2424

April 2 (weekly) low
R1
2762

March 12 high

S4
2386

March 23 high

Asterisk denotes strength of level

14:45 BST - ESM0 has broken above the March 31 high of 2636. Rising daily momentum readings and the positive Tension Indicator highlight the likelihood of further gains in the coming sessions, with the focus now on the 2786 Fibonacci retracement. 

Short-term reactions are possible around there while overstretched intraday studies unwind before further gains extend the March 23 rally. Meanwhile, support has been raised to 2636, with that level needing to underpin any immediate setbacks to keep higher levels in focus. A close beneath here, which we do not expect, would add weight to sentiment and turn price action Neutral.

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