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Lawrence G. McMillan

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Feb. 28, 2019, 11:44 a.m. EST

Stock market just can’t break through this key resistance level

Watch 2,820 on the S&P 500

By Lawrence G. McMillan, MarketWatch

AFP/Getty Images
Meeting resistance.

The S&P 500 index rally continued in this week. On Monday, the index gapped opened and the rally was strong as it challenged the 2,800-2,820 resistance area. The S&P rose as high as 2,813 that day. But then sellers moved in and have slowed pushed the index back down toward 2,780, thus once again confirming that this major resistance area is going to be difficult to get through.

As we noted last week, this is an inflection point of sorts. If the S&P /zigman2/quotes/210599714/realtime SPX -0.03%   does manage to rise above 2,820, that would not only bring buying from short-term traders who have shorted in that area this week, but would also bring in buying from sidelined technical analysts who are waiting for a breakout beyond 2,820 as a sort of “all clear” signal for the next bullish leg of the market.

-1.14 -0.03%
Volume: 0.00
Nov. 25, 2022 2:32p

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