S&P500 – Heightened Tensions between US and China weigh on the Index

Chart Analysis - The S&P 500 / US500

The chart shows that after a short-term downtrend that was triggered on the 8^th of June when the index fell sharply from 4160 to 3640 the benchmark Index is since been climbing higher strongly and has gained about 12.51%. After creating the Three White Soldiers pattern by putting up 3 strong green candles on the chart the Index indicated strong market sentiment. Lately, due to tensions between the US and China, the Index is apparently taking a breather and retrieving back and shying away before testing the Key Resistance Level at 4165.

• Resistance Zone: 4250 to 4280
• Key Resistance: 4165
• Major Pivot Point: 4070
• Key Support Level: 3920
• Support Zone: 3820 to 3790
• 200 Day SMA – Green Line
• 50 Day SMA – Red Line
• CBOE VIX – Volatility Index @ 23.93 +1.09 (+4.77%)

Trade Insights – US500

The chart shows Viable Short Positions below the Major Pivot point at 4070, with the first target of the Key Support level at 3920.

Alternatively, Long positions if the Index consolidates above the Major Pivot point at 4070, with the target to head towards the Key Resistance Level at 4165 and then to test the Resistance zone at 4250 to 4280.