USSPX500: US Markets Lifted as NASDAQ hits all-time-high and S&P500 Passes Prior Resistance Line of 2120.00
The daily candle chart below shows the medium term price history of the USSPX500 contract for difference (CFD) which is trading near 2118.1 around time of publication and less than an hour away from the market close in New York.
This CFD aims to track the S&P500 Index and today was lifted above a previous resistance barrier of 2120.00 - as the NASDAQ index reached an all-time-high today and us equities markets were lifted, and are still close to session highs in end-of-day trading.
For the USSPX500 a close above 2120.00 should help retain the bullish moemntum, with the next upside target the upper line of the medium term bullish channel (see point 4 on chart below in blue) this upper line has a trajectory close to 2180.00 in the short-term.
A failure to find support above this resistance level of 2120.00 would cause a false breakout of today's move - with a sharp drop following. For now the momentum still seems strongly bullish - but at a turning point in the trend.
Below are examples of how to trade a bullish continuation or a bearish reversal:
1. BULLISH BUY ENTRY ORDER: Create a “Buy Entry Stop” @ 2122.00 with a Limit to take profit @ 2190.00 and a stop-loss @ 2054.00 Risk/Reward Summary: Limit risk = +68.00 points profit / (-68) Stop-loss risk = Gain to Loss ratio = 1.00
2. BEARISH SELL ENTRY ORDER: Create a “Sell Entry Stop” @ 2084.00 with a Limit to take profit @ 2042.00 nd a stop-loss @ 2124.00 Risk/Reward Summary: Limit risk = +42 points profit / (-40) Stop-loss risk = Gain to Loss Ratio = 1.05
Short term daily candle chart: