Chart pattern- Descending Broadening Wedge
Ichimoku analysis (4-Hour chart)
Tenken-Sen- 3866
Kijun-Sen-3812
S&P500 has taken support near trend line support and surged more than 4.5%. The jump was mainly due to upbeat market sentiment and optimistic global economic recovery. Markets eye House of Representatives votes on the senate's $1.9 trillion stimulus bill today for further direction. The index hits a high of 3912 and is currently trading around 3879.
Technically, the index is holding above 100 and 200-4H MA (3875 and 3860). It has made an all-time high at 3963. On the higher side, the near-term significant resistance is around 3907 (trend line joining 3964 and 3938) and any jump above will take the index to 3965/4000.
The short-term support is at 3846 (200- 4H EMA), any violation below targets 3812/3790. Significant trend continuation only if it breaks 3720.
It is good to buy on dips around 3840-45 with SL around 3800 for TP of 3960.
