S&P500 Whipsawing in a 145 point trading range for the past 30 trading days- between the 50% recovery 2784 and 62% recovery at 2930 of the COVID-Crash. Not an opinion-just a description. Looks like gutter-guards at the bowling alley. pic.twitter.com/1bi0rDhSjG
— Chris Robinson (@cer_hedge) May 19, 2020
Today’s Chart of the Day was shared on Twitter by Chris Robinson (@cer_hedge). It’s a daily candlestick chart of S&P 500 Futures over the past six months. As Chris points out, price has been stuck in a range between two key Fibonacci retracement levels for weeks now. The 61.8% Fibonacci retracement of the Feb-March crash has been acting as resistance (purple), while the 50% retracement has been acting as support (yellow). Despite being up an impressive 30% from the March low, the S&P 500 has made little progress (+1.65%) over the past month. Keep an eye on this range in the near term. A meaningful breakout above resistance (around 2930) would be a big win for the bulls, while a break of support (around 2784) would favor the bears.