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“Wall of Ribbon Resistance”

What “Wall of Ribbon Resistance” must the stock market clear?

 

By Corey Rosenbloom

Let’s update our special “Color Ribbon” Chart of the S&P 500 (NYSEARCA:SPY) and note the overhead wall of resistance.

Here’s the S&P 500 “Color Ribbon” Grid:

The chart above plots the current S&P 500 with multiple moving averages of three colors:  Short-term (blue), Intermediate Term (green), and longer term (red).

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We can view price in a trend but we can use moving averages – and Moving Average Ribbons – to help us.

Note how the orientations adapt with price movements as the trend shifts and retraces.

For the moment, we’re focusing our attention on the “Wall of Ribbon Resistance” the S&P 500 is retracing into at the moment.

Here’s a closer, zoomed-in perspective of the levels:

Compare both charts – the perspective shows that the 2,050 to 2,070 S&P 500 Index Level is blanketed by ALL THREE timeframe moving averages.

The three longer-term averages overlap from 2,055 to 2,065 while the Intermediate and Short-Term averages also overlap this region.

The last time we were at similar levels like this was around August 2015, though price was at that time above these levels.

Use this chart along with your other strategies – it’s just another way to see hidden support and resistance pockets.