We’ve written a lot about the S&P 500 holding a bullish trend line. Now another potentially key level could be at play for the index.
A resistance level around 2800 has been in play since mid-March as equities rebounded from their violent swoon in February. Now that same line is getting challenged, and the index may be forming a bullish ascending triangle.
Here are two interesting factoids:
- The S&P 500 has pushed above June’s high of 2791.5 and is now back to its highest level since peaking at 2802 on March 13. Those gains failed to hold and the benchmark closed 36 points lower.
- What if the market simply holds its current level around 2793 as of 11:15 a.m. ET? In that case it would be the highest close since February 1.
Let’s be clear, we’re not making a bullish call right now. And there are still some uncertainties surrounding trade. But the positives may outnumber the risks when you consider the still-improving economy and the prospect of an historically strong earnings season right around the corner.
Stay tuned for more on both the earnings calendar and recent strategist work as we move into July.