The S&P 500 closed last week just above the 3000 level. Randy Frederick from Charles Schwab expects the index to consolidate around the 3021 200-DMA but a break of the 3138 resistance could trigger another pullback in the end.
Key quotes
“The S&P 500 seems to be stuck in ‘two steps forward; one step back’ mode. Just as it seemed to be getting its footing after the 7.1% pullback 2 weeks ago, a new wave of coronavirus cases has thrown a chill on the rebound.”
“The new consolidation zone is been supported by the 200-day SMA at 3021 but finding resistance around 3138. Like before, a sharp breakout to the upside could set up another pullback, so let’s hope it stays in this zone long enough to get this new virus outbreak under control.”
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