Uptrend Trendline Held Could Propel SP 500 Higher

Overview

SP 500 continued to climb upwards.  The uptrend trendline extending from 2191 to 3233 provided a solid support today.

What’s Next

One thing to note is the Parabolic SAR indicator is currently at 3857.  The index is currently at 3942. Tomorrow, the Parabolic SAR will probably be at 3870 or so.  If the index is struggling to climb higher, we might see a trend change in the Parabolic SAR and a broken uptrend trendline soon. 

In the Renko chart below, SP 500 closed slightly above the February high of 3930. If 3930 support can hold, SP 500 can move higher and retest 3972 high. If 3930 does not hold, 3882 / 3900 should provide some good support there. Otherwise, we will be looking at the next level of support at 3816 / 3840, which is somewhat unlikely.

Uptrend Trendline

Trendlines are a great visual aid to help us identify the overall trend. If the price makes higher highs and higher lows, the price still has an overall uptrend even if it moves briefly below the trendline.

The more conservative traders can wait for the retest confirmation to enter a trade and avoid the false breakout.

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