New month highs for the broad index
The S&P index moved to new day and month high at 2613.08. It traded at the highest level since December 14 (a month ago). The price off the low also rose by 11.3% off the December lows. Great stuff.
What next?
Technically, the pair has moved above the 38.2% of the move down from the 2018 high at 2573.61. Stay above is more bullish.
On the topside, the pair is approaching some key overhead resistance defined by the 50 day MA at 2630.99 and the 50% retracement at 2643.75. Those levels should give traders cause for pause - from a technical perspective. Both buyers and sellers will be anxious to see what happens there.
With the price down at 2608-10 at the moment, we are still 20-30 odd points away from the levels, but be aware.....be prepared.
For now, the corrective buyers remain more in control above the 38.2% at 2573.61 level.
Any closer level to help define risk/bias?
Drilling to the hourly chart below, the 50 hour MA is trading at 2575.86 and moving higher. That MA will be a closer risk level for longs (ahead of the 38.2% level on the daily). Also, since it is moving higher now, it will lag behind the price, but give a level to define risk for the longs.
