Why Now Might Be A Good Time To Invest

Uncertainty and pessimism. These are the two words that come to my mind when speaking about recent market behavior. With slowing economic growth in the first half of 2019 and fears of an ongoing trade war, the S&P 500 has responded accordingly, presenting an up and down roller coaster that has investors and institutions begging for a break.

With all of this recent market uncertainty, however, investors should take a sigh of relief as a key resistance level has just been broken on the S&P 500 that have many bullish on the index.

Throughout the month of August, the S&P 500 found consolidation between the support and resistance levels of ~$2844.00 and ~$2923.00 accordingly. A recent breakout of this consolidation period, however, should have investors optimistic about the future trend of the index. On 9/4/19, The index responded very well to news signaling possible trade talks between the US and China, sending the chart upwards 1.30%, closing at $2976.00 and finally breaking out of consolidation. Breakouts of consolidation periods toward the upside typically signal an extended push and an overall bullish sentiment.

With trade talks resuming in the next month and this key resistance level being broken... it may be a time to sit back and enjoy an extended grace period of market stability.

The index faces its next challenge when facing an all time high and potential resistance of $3,025.86.

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All the best,

Matt

The chart showing the key breakout of TS: SPY. An ETF that tracks the S&P 500.

Disclaimer: This post is simply for educational purposes. I am not here to give financial advice. I am simply giving my own opinion.