The S&P 500 rallied it during the week, reaching towards the 50 week EMA, as it is seeing this level as important yet again. The 3000 level is just above and then of course will offer a certain amount of psychological resistance as well. Beyond that, the 61.8% Fibonacci retracement level also offers a lot of resistance, so at this point it is likely that we will see sellers come back in. However, if we were to break above the 3000 handle, it is likely that the market then goes looking towards the 3100 level, possibly even the 3400 level.
S&P 500 Video 25.05.20
Underneath, I see the 2800 level as an area of potential support that extends down to the 2700 level. A breakdown below that level then opens up the door to the 2500 level. All things being equal though, this is a market that I think continues to be very choppy to say the least but we have run into quite a bit of resistance as of late, and as a result I think you will probably see more consolidation before the next move. However, the next move will be apparent by either breaking the 3000 level to the upside or breaking down below the 2800 level. At that point, I would anticipate quite a bit of momentum coming back into play, as it would finally free the market from the range it has been in for the last six weeks or so. One thing that is for sure, you are going to see a lot of noise in the stock market over the next several months, as the world tries to decide whether the economy is getting better or worse.