BY LICIA LESLIE
June 2, 2024
Hi Shoppers,
Was that window dressing on the last day of the month or a sustainable rally?
Let’s take a look at Friday’s action on the chart:
The S&P 500 (Ticker: SPX) had an $88 reversal, not only closing on the high but well above that all important support/resistance level at $5261.
Friday’s candle is called a hammer and can signal a change in trend or a change in this downtrend.
A hammer is formed when the bears continue to control the market and it trades lower, then the price reaches a certain point where the buyers or bulls come in and the bears cover their shorts causing a rally and a close at or near the high of the session.
Of course we need the confirmation with the SPX opening and trading higher on Monday morning.
Also, look at the volume. More evidence of a continued rally.
Next resistance comes in at $5340.
Thanks for Reading … See You Next Tuesday,
Licia Leslie
Licia Leslie
Head of Technical Analysis
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