The S&P 500 has been trading in quite the volatile range lately. Moves have been large and quick, with little warning before 20 point swings. Last weeks move to touch to lower support in the 1980 area and then turning has set a picture for what could come next.
The S&P E-mini futures are trading into an important area of resistance in the 2050-2060 area, on the weekly and daily charts. Here is where we will see the continuation of the direction or the turn to test back to previous support. If price trades to break through the 2060 area then we will be looking to see it move back to test the 2090.00 area again, with a longer term target up at the 2140 level. Price has had a tendency of being very choppy around the top in previous new highs, so some turbulence will be expected in the 2090 area without a clean high volume run through.
If we see price get stuck in the 2060 area of resistance then could be looking for a test back to previous support before continuing the move. Support is in at 2010 and at the 1980-90 previous low. In the last two attempts at support, the ES S&P500 has failed again to break below the 200 Day MA and now looks to be breaking back above the 50 Day MA as well should we see the move above 2060.00.
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