S&P500 support and resistance – old support Essential Chart

S&P500 Support and zone Resistance – Old support Technical trading

S&P500 ETF $SPY trading chart.  We are going to look at the S&P500 areas of support and resistance.

Watch price action on $SPY we put in a high volume low with sellers capitulating in the Bear Market Price Zone.  We called this level in our Live trading room to watch for a bounce.

S&P500 support becomes Resistance

Price broke under the correction level (Red Zone) of 10% from the top and proceeded to Bear Market Price zone in green which acted as support.

In price action trading prior support in a down trend becomes Resistance when price reverses.

The 10% price correction off the top is a consolidated zone that finally broke Mid-December with a volume push and sellers took control of direction.  This is where the support level at 2600 will now become resistance.

S&P500 50MA acts as resistance

The 50MA  also will act as Resistance (like a ceiling) for the $SPY.  Keep this in mind for your strategy and manage your risk first.

This will be a key area as Algos could roll from a net short to an active buy zone.

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