Stock market has a decision to make this week

With the U.S. stock market unable to break through the 2,507-2,510 resistance region on the S&P 500, investors have to make a decision this week about this inflection point.

In last week’s article, we were targeting the 2,507-2,510 S&P 500 SPX, -0.22% region for the market to make a decision as to whether it wants to attack 2,600 sooner rather than later. And the market did not wait terribly long to begin to test that resistance. Last Monday, the market gapped up directly to the 2,507 region, and spent the entire week probing the resistance region between 2,507 and 2,510. Yet, during the entire week, it was not able to overcome that resistance.

The other side of the market is represented by the 2,480 support region, which has not been breached either.

It looks as if the market is facing an important choice. Will we see a break above $ 2510 or below $ 2480. One thing is for sure. Until we see the price under the support level, we can expect "fierce" attempts for a break above the critical level of $ 2507 - $ 2510.

Source: Bloomberg Pro Terminal

Junior Trader Stefan Panteleev

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