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The stock market breaks a support level.

The stock market breaks a support level.

May 03, 2022
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The last week of April was a volatile trading week for the stock market, with large swings to the upside and downside, but ended the week over all decisively lower.

In last week’s market update email we discussed whether the S&P 500 would find support at its previous lows of 4157. The market broke this support level on Friday but, as of the beginning of this week, not decisively. It’s important to note that support and resistance levels are more than a specific number. It’s more useful to look at a range of numbers around the support or resistance level and monitor how the stock market is acting within this range. Right now, it’s too early to tell whether the market will indeed find support in this area and reverse to the upside. If the market does continue to drop, the next area of support for the S&P 500 in the 3950 to 4050 band.

Photograph by: Freiraum Photographie on Unsplash

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