CFD Update: SPX500 holds at support but will we see a rally?

Hi traders, today we’re looking at the SPX500 after buyers re-held long-term support yesterday.

Until yesterday’s hold trade had been one way on the SPX500 as markets continued to deal with the ongoing tensions between Ukraine and Russia. Over the last three weeks, just over 5% was wiped off the index as investors fled back to safety. yes yesterday’s developments were not the best but to the markets, it looks like the lesser of two evils.

Price re-held at 4270 long-term support maintaining the level that’s held since July 2021. For now, this is our line, while things in Europe continue at the current situation we hope to see this level continue to hold. This could feed further value buying and validate the new V pattern that we’re seeing set up. We want to see further buying to really start confirming this pattern. If buyers can get a new leg higher going we see 4470 as potential resistance.

If things escalate in Europe and price breaks key support, that not only resumes the current downtrend but also confirms the SPX500 in official correction status.

SPX500 D1 Chart

The post CFD Update: SPX500 holds at support but will we see a rally? appeared first on Eightcap.

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Joseph Jeffriess, Market Analyst in Eightcap
Eightcap is one of the leading CFD brokers in the market, providing online trading services to a wide range of clients from around the world. They offer 1,000+ CFDs based on Forex, commodities, indices, shares, and cryptocurrencies. The well-established trading company was founded in Melbourne, Australia, in 2009, and is regulated by the Australian Securities and Investments Commission (ASIC), the Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC) and the Securities Commission of The Bahamas (SCB).