The recent rally in the stock market has been one of the most impressive in history. After a tumultuous end to 2018, the S&P 500 has soared to a new all-time high and is now up over 18% this year.
But, with any rally, comes a key resistance level that needs to be broken in order for the rally to continue. For the S&P 500, that key resistance is the 3,020 level. This level has been a stumbling block for the index ever since September 2018, when the S&P 500 hit its peak before tumbling to its low of 2,346 in late December.
It’s essential for the S&P 500 to break through this level if the current rally is to continue. If this level can be broken, then it will signal to investors that the current rally has more strength and could lead to higher prices.
Breaking above this level could also signal that the market is becoming more bullish, since this is a good indication that the key economic indicators are positive. These positive economic indicators would include lower unemployment rate, rising wages, a strong housing market, and improved consumer sentiment.
It is also important for the S&P 500 to break above this key resistance level in order to show that the stock market is being supported by higher volume of trading. If volume remains low, the rally could be short-lived and may fail to be sustainable.
However, even if the S&P 500 fails to break above this key resistance level, it is still possible for the index to keep rising. The strength of the current rally could lead to higher prices, even if the level is not broken. But, it is essential for the S&P 500 to break above this level if investors are to maintain their current levels of confidence.
With the S&P 500 now edging closer to the key resistance level of 3,020, investors will be watching this closely to see if the current rally can be sustained. Only time will tell, but it is an essential level for the stock market’s rally to be successful.
The recent rally in the stock market has been one of the most impressive in history. After a tumultuous end to 2018, the S&P 500 has soared to a new all-time high and is now up over 18% this year.
But, with any rally, comes a key resistance level that needs to be broken in order for the rally to continue. For the S&P 500, that key resistance is the 3,020 level. This level has been a stumbling block for the index ever since September 2018, when the S&P 500 hit its peak before tumbling to its low of 2,346 in late December.
It’s essential for the S&P 500 to break through this level if the current rally is to continue. If this level can be broken, then it will signal to investors that the current rally has more strength and could lead to higher prices.
Breaking above this level could also signal that the market is becoming more bullish, since this is a good indication that the key economic indicators are positive. These positive economic indicators would include lower unemployment rate, rising wages, a strong housing market, and improved consumer sentiment.
It is also important for the S&P 500 to break above this key resistance level in order to show that the stock market is being supported by higher volume of trading. If volume remains low, the rally could be short-lived and may fail to be sustainable.
However, even if the S&P 500 fails to break above this key resistance level, it is still possible for the index to keep rising. The strength of the current rally could lead to higher prices, even if the level is not broken. But, it is essential for the S&P 500 to break above this level if investors are to maintain their current levels of confidence.
With the S&P 500 now edging closer to the key resistance level of 3,020, investors will be watching this closely to see if the current rally can be sustained. Only time will tell, but it is an essential level for the stock market’s rally to be successful.
