| 2019-05-24 14:38:15|
SPY, SPX 14:38 05/24 05/24/19
On The Fly: Weekly technical notes for S&P 500
The week was one of volatile extremes for the S&P 500 (SPX) as the big gap down on Monday morning formed the low of the week. The sessions that followed alternated between euphoria and despair concerning trade deal prospects with China. As the week comes to an end before the three-day holiday weekend, price is nearly back to where the week began but off the lows, which very nearly touched 2800. On a longer-term chart, a drop below 2800 would confirm either a bearish cup and handle or a head and shoulders top. The downside potential, if either pattern became active and completed, would be to the 2650 area at the nadir. For the upcoming week the big levels to watch are at 2800 as support and at 2890 as resistance. A move above the latter level would void the bearish patterns.