EDGE Chart of the Day – S&P500 (February 20th, 2024)

In this week’s “Week Ahead” video I discussed the markets being “stretched” and were at risk of a pullback. Today we are seeing nearly a 1% pullback. In a bull market as we are in, that is nothing to be concerned with. At least for today. However, I wanted to outline the key levels any bull should be focused on, because if these levels outlined start to bear, we could see some unexpected profit taking from recent bulls who have bought the recent breakout at all time highs.

The levels I am focused on currently at at channel support which has been in tact since early December. That level comes in at 4920 or so. On the E-mini futures that level is close to 4910. After that a break of the January 2022 highs at 4820 is the major breakout point. Below there you are likely to see some accelerated selling.

Blake Morrow

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