# Why The 4,300 Mark Was So Critical

Canonical: https://stocksurgedaily.com/why-the-4300-mark-was-so-critical/

Hey, Ross here:

The S&P 500 just closed at a new 52-week high – past the 4,300 resistance level. 

I like what I’m seeing in the markets. So let’s start the day with an actionable trade idea.

## **Chart of the Day**

![](https://stocksurgedaily.com/wp-content/uploads/2023/06/Screenshot-2023-06-09-at-6.51.44-PM-1024x659.png)

UBS analysts doubled down on its bullish view on OnCloud’s (ONON) stock last Friday. They have a buy rating on ONON and a price target of $42. 

This stock has been a favorite of mine for several months. It went public in late 2021. It performed great initially. But the 2022 bear market gave it a beating.

ONON has more than doubled off its 2022 lows and the company is growing sales at an astounding 80% quarterly rate.

Shares dipped below the 50-day moving average _(red line on chart)_ in May and did an “undercut & rally.” This is where a stock will breach a previous support area triggering thousands of stop losses and taking investors out. 

Institutions often buy here and drive the price back above support _(dashed line on chart)_ to continue the move higher.

Investors may consider buying here with a 10% stop loss near $27.25.

**P.S.** Would you like special trade prospects and potential market moves just like the above sent directly to your phone? Text the word **ross** to 74121.

## ****Insight of the Day****

**The breaching of a major psychological resistance level can have a major snowball effect**.

A lot of the reason why support and resistance levels work comes down to psychology.

When a major resistance level – such as the 4,300 mark for the S&P 500 – is breached, many traders _(often rightfully)_ assume that others will join in the buying and drive it up even further.

So they themselves cover any short positions and go long – further adding to the buying pressure.

It’s a positive feedback loop – the snowball effect.

And with the S&P 500 having breached the long-held 4,200 resistance level back at the beginning of June…

Only to blow past the 4,300 mark not even 2 weeks later…

I can see many individual stocks surging as traders come to accept that we are indeed in a bull market.  
And these are _perfect_ conditions for my FIRE Strategy, which has already delivered gains like these:

![](https://stocksurgedaily.com/wp-content/uploads/2023/06/Screenshot-2023-06-13-at-8.23.01-AM.png)

…even _before_ the S&P 500 had breached the 4,200 level.

I’m expecting this strategy to pay off even more now that the market is picking up serious momentum…

Which is why I’m going LIVE **later today at 12 p.m. Eastern** to show you how to start using this strategy _right now_ – so you can start exploiting these hot market conditions.

**[Just click here to save your seat…](https://clktrac.com/JoinRoss)**

Because once the Fed moves tomorrow, the market could explode even higher…

And you want to position yourself before then.

See you soon.

Embrace the surge,

![](https://lh3.googleusercontent.com/u1bkP1uK4S8G0S3HvULgVlf5Oo5Wbrv55mAknbfc5OR6vNHNjP1qlrqX2FKnCLs8y4Q5nWZ9PwfIVqxhz-34fL32yao8wdaoiXCbJJ58EmJQpGN3E4bEH0IN7idHTcKiHWk13J9JVX_wS94ti3GRsm8IvwDHfDXbLDoq3cBuIPLlVZxmB1XRqeqcQ7ou_w)

Ross Givens  
Editor, **_Stock Surge Daily_**