CRITICAL MARKET TEST AT S&P 500 2945-2955
Clients should continue to watch the S&P500 2945 to 2955. From the chart below, that is the level at which the market failed in early March and then plummeted. Also, the intraday highs on 4/29, 5/11, and 5/12 were 2954, 2944, and 2945, respectively. The S&P500 closed on Monday at 2953, just below the 4/29 close and 32% above the 3/23 close.
TPA wrote about this level in the 5/15 World Snapshot:
“2950 – is where the S&P500 fell below 2020’s uptrend line mid-March (chart 1). Chart 2 shows that the market rallied just shy of 35% from the intra-day low on 3/23, but cannot seem to move above the 2950 level. This is the “proving level”. The point that needs to be surpassed to show that the huge oversold rally since the third week in March has staying power.”