Mike's Mid Day Minute is available to members on Monday, Wednesday & Friday evenings, with one article per week available to non-members. Members please login and see "Mike's Mid Day Minute" in the navigation menu towards the top of the page.

Tough Resistance Ahead for S&P 500


Now that the e-mini S&P 500 has recovered just about all of yesterday's late-session plunge (18 points), what if anything does the big-picture candlestick chart tell us?

Let's notice that the rally peak last Friday at 1106.75, when attached to the prior meaningful recovery rally peak at 1174.75 from 5/13, creates a resistance line that cuts across the price axis today at 1089.80.  That happens to be just 2 points above today's intraday high (so far), but represents very strong resistance to any further near term strength.  Just North of the trendline is the prior rally peak of 1096, yet another very powerful and important resistance plateau. Finally, let's notice that the 20 DMA is declining sharply towards the 1100 level, and is arguably the most potent of all of the near-term impediments to further upside.

What this tells me is that some bullish influence must come along that is stronger than the resistance levels mentioned above for the e-SPM to continue higher in the upcoming hours. Perhaps Friday's Employment Report is a candidate, in the absence of another bout of "event shock."

  • Action-Oriented Trade Set-Ups in Stocks & ETFs
  • Macro Analysis of the Broader Markets
  • Detailed Technical Guidance for each Trading Idea
  • Live Interaction w/ Mike & Our Member Community
  • And Much, Much More!
Join Now! - Special Offer!
Veteran Wall Street analyst and financial author, Mike provides detailed and timely analysis and trade set-ups on a range of markets. Read more...

Have Mike's “Out Front” morning analysis delivered FREE to your email inbox twice weekly!