News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
Oil - US Crude
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfJE79 https://t.co/hftCEho1lM
  • Gold price action is primed for volatility next week with the Fed decision on deck. How real yields and the US Dollar react to fresh guidance from Fed officials will be key for gold outlook. Get your weekly gold forecast from @RichDvorakFX here: https://t.co/MzaIl7tPmZ
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/arxYmtQeUn https://t.co/rFlQtyQS81
  • Canadian Dollar snapped a three-week losing streak after USD/CAD stalled at key technical resistance. Get your CAD weekly forecast from @MBForex here: https://t.co/BPHuKecwnz https://t.co/73OmuCKfU9
  • Forex quotes reflect the price of different currencies at any point in time. Since a trader’s profit or loss is determined by movements in price, it is essential to develop a sound understanding of how to read currency pairs. Learn how to read quotes here: https://t.co/CNtqrKWDBY https://t.co/KzhQnGiLyt
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/cuneuJNZlH
  • Get your snapshot update of the of top level exchanges and key index performance from around the globe here: https://t.co/d8Re5anlG5 https://t.co/danCiP5vqK
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/9S5tXIs3SX https://t.co/JhYoQ7I19K
  • The Nasdaq 100 index is aiming to breach a key resistance level at 14,950 for a second time. A successful attempt may open the door to further gains, although the MACD indicator flags signs of weakness. Get your equities forecast from @margaretyjy here: https://t.co/BEYupi32qB https://t.co/PWeXE8tZVY
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/t34kotPE8R
S&P 500 Turns to 1800 as Key Support Holds

S&P 500 Turns to 1800 as Key Support Holds

Research, Research Team

On the back of hope and confirmation that emerging markets are implementing policies to protect their currencies from the impact of the Federal Reserve’s reduction of QE3, risk assets (for example: stock markets, high yielding currencies) rallied on Wednesday. The S&P 500 has rebounded ahead of key support as a result.

Emerging market economies have been under pressure the past several weeks as 2014 has sung a different tune than 2013. Investors have started to show real concern that the Federal Reserve’s plans to end its QE3 bond-buying program will have a negative impact on riskier assets. However, on the back of a significantly stronger Turkish Lira – thanks to a surprise 5% rate hike by the Turkish central bank – traders may find that there is one less reason to be pessimistic.

The S&P 500 turned higher back to 1791.50 for a gain of +1.17% on Tuesday. After news broke of the emergency rate hike, investors became even more relieved of recent emerging market stress, with the S&P 500 climbing by another +0.50% to 1801.50 after hours. The rate hike has been interpreted (so far) as a sign that even the more vulnerable emerging markets are willing to take serious action to deal with the impact of the Federal Reserve’s taper efforts.

Forex Technical Analysis: S&P 500 (SPX500) Chart (Daily)

forex_sp500_turns_key_support_body_Picture_1.png, S&P 500 Turns to 1800 as Key Support Holds

The S&P 500 has turned higher to continue its series of higher highs and higher lows going back to November 2012. The January low has been set a higher level than the December low, and the 1760 which has previously served as a magnet for price held as support.

We have previously pointed out on the chart there are various blue boxes highlighting important lows in the S&P 500. An important observation was that the S&P 500 rallied on each Slow Stochastic “buy” signal before a new “low” relative to the last signal was set. Yesterday a “buy” signal was given.

Should traders be worried about the FOMC meeting for the S&P 500?

In forex trading, just like in any other financial asset class, past performance is not indicative of future performance. Technicians use the history of price to reveal patterns about how investors feel about a given instrument. The “buy” signal given has occurred in the same pattern as the three previous “buy” signals emerging from oversold territory: as price sets a higher high relative to the previous “buy” signal in the Slow Stochastics indicator.

If the uptrend the S&P 500 has seen is to continue, then price and the indicator should continue to march to the same beat. Or, ahead of the Federal Reserve’s meeting on Wednesday, the S&P 500 might have made what could be the next swing low in the year-plus rally. Traders can monitor this pattern going forward because if 1760 breaks, then the pattern has changed and there would be evidence that the rally would be changing.

The S&P 500 hasn’t seemed to mind whatever the Federal Reserve does. In September, when the Federal Reserve surprised traders by not tapering QE3, stock markets rallied. In December, when the Federal Reserve surprised traders by tapering QE3 by $10B to $75B per month, stock markets rallied. Fortunately, the technicals may be providing a clear level to define risk to S&P 500 bulls for the near future, at 1760.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES