Home > CFA L2, equities, technical analysis > S&P 500 up 5.5% in 4 days – Good shorting opportunity

S&P 500 up 5.5% in 4 days – Good shorting opportunity

Why?

Triple resistance ahead… look at the chart below.

Source: stockcharts.com

S&P 500 Index is approaching strong resistance in the current area…

  1. First & foremost, the 1100 psychological barrier… look at the last quarter of 2009 from Oct-Dec, the index tried to breach the 1100 level 5 times before breaking through at the end of December
  2. We are 15 points away from the 200 day moving average at 1115
  3. And lastly we are approaching the Downtrend trend line from May 2010 highs
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