I was using this chart been found support and resistance points to be between 2401 and 2488 and the strength of last week was greater than what I imagined. There is a cluster of bullish candles which hit a very hard resistance at 2480
Every candle featured here is two days. So the highs for the year at 2488.5 and Friday's close at 2473.75 show that price is midrange but it is high and extended. It does not mean that the market cannot go higher but the S&P 500 is right near a "trigger" it is at an extreme high in the range, and when I first put together this chart, I had in mind the first resistance zone at 2455 and 2459, it is clear to see that price went through that resist point very quickly. Then the shaded rectangle just above those two points was quickly taken out as well. The zone between 2475 and 2488 is the most powerful zone and it seems that price is respecting it very nicely.
If there should be any type of bearish activity it would involve more confirmation and some momentum on the downside. The topping tell between 2480 and 2473 is strong enough to believe that the third zone of resistance will be everything we need to prevent the market from going higher at least in the short term. There are some good buying points below, but it would take a few days for them to reveal themselves.
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