Key Level to Watch this Week

We have reached a potential inflection point on the S&P 500 index at the 4600 level. As of today, we have had two consecutive closes above 4600. If we continue to close above this significant level that previously served as resistance, and now serves as support, that will signify stronger bullish sentiment and a potential continuation of the rebound from March lows. I look for 3-5 daily closes above a support level to give me confidence it will hold and price will move up from there. But if that level breaks strongly to the downside on a closing basis (meaning the SPX closes below 4600 at the end of trading) I will interpret this level as a false breakout and anticipate a leg lower in the near-term. The key takeaway is 4600 is a crucial level to monitor through the remainder of this week and into next week. Continued closes above that level inject more bullishness into the market, while any closes below 4600 on the S&P 500 may signal a move lower.