The S&P 500 is about to decide whether it rips to new highs or falls 20%. The index is at a crossroads, sitting in both a seven year rising channel and a one year falling channel.
In the short term, expect the S&P to gravitate towards 2,025, which represents falling resistance of the one year down channel and the 200 day moving average.
If the S&P can decisively break above 2,025 - 2,050 with high volume, expect the market to continue its seven year up trend and potentially reach new all time highs.
However, if the S&P is rejected at the 2,025 area, and breaks below rising support of the seven year channel, expect the market to make new lows.
1,575 is a long term target for the S&P if it decisively breaks below the seven year rising channel, representing downside of 20% from today's close. 1,575 represents the previous highs of 2000 and 2007. Old resistance tends to become new support, and vice versa.
In the short term, expect the S&P to gravitate towards 2,025, which represents falling resistance of the one year down channel and the 200 day moving average.
If the S&P can decisively break above 2,025 - 2,050 with high volume, expect the market to continue its seven year up trend and potentially reach new all time highs.
However, if the S&P is rejected at the 2,025 area, and breaks below rising support of the seven year channel, expect the market to make new lows.
1,575 is a long term target for the S&P if it decisively breaks below the seven year rising channel, representing downside of 20% from today's close. 1,575 represents the previous highs of 2000 and 2007. Old resistance tends to become new support, and vice versa.
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