The S&P 500 Index suffered a massive sell-off on Thursday, tumbling by the most since March amid coronavirus fears in Houston and across the US. Pessimism about the Fed is also in play. Can stocks stabilize? Some technical support is seen.
The Technical Confluences Indicator is showing that the S&P 500 Index has some support around 3,056, which is the convergence of the Simple Moving Average 50-15m, the SMA 5-15m, and the Bolinger Band one-day Middle.
It is followed by another cushion at 3,042, which is the meeting point of the Fibonacci 23.6% one-day and the previous 1h-low.
Looking up, weak resistance awaits at 3,049, which is the previous 4h-high.
The upside target is 3,065, where the Simple Moving Average 100-4h hits the price.
Here is how it looks on the tool:
Confluence Detector
The Confluence Detector finds exciting opportunities using Technical Confluences. The TC is a tool to locate and point out those price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc. Knowing where these congestion points are located is very useful for the trader, and can be used as a basis for different strategies.
This tool assigns a certain amount of “weight” to each indicator, and this “weight” can influence adjacents price levels. These weightings mean that one price level without any indicator or moving average but under the influence of two “strongly weighted” levels accumulate more resistance than their neighbors. In these cases, the tool signals resistance in apparently empty areas.
Learn more about Technical Confluence
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