S&P500 is Testing 50-day MA
Global equities took a notable hit on Monday due to the new fears regarding the Covid19 delta variant, which is spreading around the world once again. But what is interesting is that the new variant is also affecting the fully vaccinated people as well. Some countries already reinitiated partial lockdown and restrictions, which sparked a panic selling across the board. S&P500 is now testing its 50-day MA for the fifth time this year, which should be watched very carefully as a breakthrough that support would be another bearish factor not only in the short term but also in the medium term, meaning S&P500 could be heading to 20% correction. Therefore, we prefer to wait and see how the index reacts at the opening bell before we decide on our next trade.
| S3 | S2 | S1 | Pivot | R1 | R2 | R3 |
| 4217.90 | 4225.50 | 4231.40 | 4239.00 | 4244.90 | 4252.50 | 4258.40 |