Brian Joyce, CMT, was featured on the Nasdaq Market News blog on Tuesday with new commentary on the S&P’s recent behavior, illustrated by the chart above.
“The 2,800 – 2,817 range became an important price zone in Q4 as it is the scene of the crime where the index peaked on the three biggest relief rallies in October, November, and December,” wrote Joyce. “It is natural to expect this range to be a battleground of activity now that price is rebounding from the bottom side as recent longs look to lock in gains and short term speculators identify clearly defined risk levels to go short.”
“The SPX is now testing this resistance zone for the seventh consecutive session. The more time it spends chipping away at overhead supply, the more likely it is to break through instead of succumbing to the pressure and rolling over,” he added.
Read the full article, including all of Joyce’s commentary, here: Stocks Mixed as Wall Street Monitors Trade Talks.