Global stock markets fell dramatically on Wednesday as risk aversion continued to dominate the market. The investors continue to respond to the trade war fears, with tech stocks on the radar.

The Cboe Volatility Index (VIX), the most widely followed barometer of expected near-term gyrations for the S&P 500, jumped 4.52 points to close at 25.23, its highest close since February 12. The S&P 500 fell for a sixth consecutive day.

This shows a rising level of risk aversion. The risk aversion is keeping investors out of the stock markets. For your info, VIX shares a negative correlation with the stock markets. The higher value of VIX represents a higher level of uncertainty and, as you know, uncertainty is something investors really don’t like.

In order to cope with this situation, we have spotted the trading levels.

Support Resistance
2633.15 2730.06
2593.81 2787.63
2496.9 2884.54
Key Trading Level: 2690.72

The S&P500 is coming out of the oversold zone, as you can see on the hourly chart below, the RSI is crossing above 50. This indicates the potential of a bullish reversal and that’s exactly we are trying to capture. SPX can find an immediate resistance at $2,685 (38.2% Fibo Level) and $2,696 (50% Fibo Level). Fellas, in between $2,685 and $2,696, the S&P500 can face a strong resistance at $2,690.

Good luck and trade with care!