Ladies and Gentlemen, we have a new stimulus package / S&P500
On Sunday, President Trump signed a 2.3 trillion pandemic aid and spending package into law. The price reacted with a strong bullish movement, and we are close to a new ATH.
The bubble goes up, and we go with the bubble.
Let's see how this situation plays from a Technical Perspective in 2 timeframes.
4HS: The price reversed from a Support zone after an aggressive bearish movement on December 21. We can see an ascending channel that explains the price behavior pretty well, so it's a relevant area to pay attention to.
We have two targets for the current movement.
a)The most conservative one: 3800 (the higher trendline of the ascending channel) that is a great place to take partial or total profits if you have long setups
b)The final target, which is a Daily trendline that we considered, has good chances of making the price reversed either for a considerable correction or for a strong bearish movement. We don't want to go further from there without observing clear structures.
Daily Chart:
The bubble goes up, and we go with the bubble.
Let's see how this situation plays from a Technical Perspective in 2 timeframes.
4HS: The price reversed from a Support zone after an aggressive bearish movement on December 21. We can see an ascending channel that explains the price behavior pretty well, so it's a relevant area to pay attention to.
We have two targets for the current movement.
a)The most conservative one: 3800 (the higher trendline of the ascending channel) that is a great place to take partial or total profits if you have long setups
b)The final target, which is a Daily trendline that we considered, has good chances of making the price reversed either for a considerable correction or for a strong bearish movement. We don't want to go further from there without observing clear structures.
Daily Chart: