Technical analyst pinpoints the critical S&P 500 support level both bulls and bears should be watching.
Transcript:
BOB LANG: So looking ahead what S&P 500 support levels should both bulls and bears keep an eye on. Well I’m really looking at the 5500 level in the S&P 500. That is the level that we tagged about a week and a half ago back in the early mid part of march. We bounced off of it nicely for about 6 or 7 days. And if we head back down to that level and we bounce up to 5500 level and start heading upwards, that would be positive. That would be bullish. But if we break down below that 5500 level, there are lots of of targets below that the S&P 500 could reach as an objective. We’re talking about 5400, possibly even all the way down to 5100, which would be a sharp move down for the markets. It would not make anybody happy at all. But if we do happen to bounce off that 5500 level and move back up through that 5826 level, now I’m targeting that 5826 level as a 50% retracement from the all time highs, which is about 6140 all the way down to the 5500 level, 50% 50% retracement level at that 5820 level, 5826 level is going to push the markets much higher. And I think we got a shot to get back to those all time highs.
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