1,304 Important S&P 500 Level to Watch
We covered a more bearish perspective earlier today. The bullish case, in the short run, is shown in the chart below. A close below 1,304, especially without bullish divergences present, would possibly open the door to a more rapid decline in stock prices. Price has held at the green and blue arrows in the recent past; those lines are coming into play soon.
Another possible bullish signal short-term could come in the form of an “inside day”. An inside day occurs when the current session’s range stays within the range of the previous day. For example, the high yesterday was 1,325.86 and the low was 1,311.80. If today’s range does not move outside the bounds of yesterday’s trade, it indicates indecision, and often is followed by a change in the short-term trend. The current short-term trend is down.
