On Friday, the S&P 500 index managed to claw it’s way back into positive territory in late afternoon trade, closing the session at 2691 (+0.45%).
The prior three-day move on the downside was a breakdown of a rising wedge formation which now maybe at the start of a bullish leg. This typically occurs where the price tests the top of the wedge before moving lower again.
Here, our stop-loss was tested on an intraday basis however managed to close above the stop and finding horizontal support.
At current levels the price is below the 50-day moving average however above the 100 and 200-day moving averages.