As the market continues to be choppy and rangebound, it certainly seems to be following certain levels. The S&P 500 is currently pushing up against a resistance band around 1885. Â And should it break higher, many will be left wondering if 3 times is a charm in breaking out to new highs?
Looking at the chart below resistance lies at 1885 and 1900. And the move higher is supported by a series of higher lows and candle tails (buying). Â A strong move higher with follow through above 1900 could see a new leg higher. But the key there is follow through.
However, if the most recent lows are snapped, the S&P 500 will likely be magnetized back towards the 1850 level (late 2013/early 2014 resistance).  This would start to put pressure on the index and increase the likelihood of a further move to the downside. See chart below.
S&P 500 Daily Chart with support and resistance levels
Keep an eye on 1900 as that is the elephant in the room. Â Lots of eyes there, so the index will need more than a close or poke above that level to start a new leg higher. Â Trade safe.
No position in any of the mentioned securities at the time of publication. Â Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
