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.

Free Trading Guides
EUR/USD
Bearish
GBP/USD
Bearish
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
USD/JPY
Mixed
Gold
Mixed
Oil - US Crude
Mixed
Bitcoin
Mixed
More View more
Notice

DailyFX PLUS Content Now Available Freely to all DailyFX Users

Real Time News
  • Greed has proven to be a hindrance more than assistance for traders. How does greed lead to #FOMOintrading? Find out from @RichardSnowFX here: https://t.co/aT8TZjlFqP https://t.co/Le8Qx6OOwV
  • $GBPUSD at the moment break-even straddles = 152pips meaning that for option traders to realize gains, the spot price must see a move greater than 152pips. Get your market update from @JMcQueenFX here: https://t.co/odj2lLRrGf https://t.co/RXCBwHGluG
  • $EURGBP has fallen over 6% since August and is now rapidly approaching a critical support level not reached since May. Will a break below accelerate the aggressive selloff? Find out from @ZabelinDimitri here: https://t.co/CBM8Fg7vM0 https://t.co/0yDnEpzQqR
  • The #Euro is struggling for direction against the US Dollar but the near-term downtrend guiding it lower since late June remains firmly intact. Where is $EURUSD heading? Get your technical analysis from @IlyaSpivak here: https://t.co/us6AINmuoe https://t.co/J4hQtyprYf
  • $DXY & $SPX500 hold steady after #FED rate cut. Get your update from @JohnKicklighter here: https://t.co/vqXlKCMDYA
  • Dow Jones & Dax 30 levels to watch ahead of the fed from @PeterHanksFX here: https://t.co/iUIrsygKz2
  • The politics of the US and UK may be starkly divided but their grip on the vast, $6.6 trillion global foreign exchange trade seems as tight as ever. Get your market update from @DavidCottleFX here:https://t.co/xTKHOvrIqg https://t.co/vtHhdnF82Q
  • How can confidence in trading help with avoiding #FOMOintrading? Find out from @WVenketas here: https://t.co/MY7j9ISn4S https://t.co/n7XwfiDZz2
  • The week saw a slightly more dovish than expected RBA minutes increase the importance of the latest labour market report, which showed an uptick in the unemployment rate to 5.3%. Where is $AUDUSD heading? Find out from @JMcQueenFX here: https://t.co/odj2lLRrGf https://t.co/gmGjlGBvjv
  • #OOTT https://t.co/TLgP7dUqFv
S&P 500 Trading Volume: A Black Hole Around Fed Minutes

S&P 500 Trading Volume: A Black Hole Around Fed Minutes

2019-04-10 20:30:00
Peter Hanks, Junior Analyst
Share:

S&P 500 Trading Volume Talking Points:

S&P 500 Trading Volume: A Black Hole Around Fed Minutes

S&P 500 trading volume slipped into a black hole ahead of Wednesday’s FOMC meeting minutes as traders saw little cause to weather the event risk. April alone has delivered 5 of the index’s 6 lowest volume trading sessions, and volume’s moving average has slipped to its lowest level since late September 2018.

S&P 500 Price Chart: Daily Time Frame (September 2018 - April 2019) (Chart 1)

S&P 500 price chart fed

Similarly, the index’s average true range has fallen alongside volume. That said, traders are oft reluctant to risk exposure during Fed meetings. In the following days of an event, average volume is frequently heightened, and the highs are astronomical – suggesting traders are coping with a notably revised policy outlook.

S&P Trading Volume and the Fed (Chart 2)

S&P 500 trading volume

Data compiled from Bloomberg

Despite Thursday’s sparse economic calendar, volume should pick up – albeit not to the same degree given the uneventful minutes release. With event risk in the rear-view, traders can look to the future and position for earnings season and the implications from an announcement from US Treasury Secretary Steven Mnuchin on trade war progress.

S&P 500 Price Chart: 1 – Hour Time Frame (March 24 – April 10) (Chart 3)

S&P 500 price chart

As for the technical perspective of the index, it trades narrowly beneath trendline resistance from late December. Although the line has been subject to breaks, it continues to influence price action. Conversely, the S&P 500 has horizontal trendline support from the high of February 2018 beneath it at 2875. With earnings on the horizon, IG clients have only increased their short exposure.

S&P 500 Trading Volume: A Black Hole Around Fed Minutes

Retail trader data shows 24.8% of traders are net-long with the ratio of traders short to long at 3.04 to 1. Since we typically take a contrarian view to crowd sentiment, the fact that retail traders are overwhelmingly short suggests the S&P 500 may continue its recent trend.

--Written by Peter Hanks, Junior Analyst for DailyFX.com

Contact and follow Peter on Twitter @PeterHanksFX

Read more: Tech Sector: Highest Ratio to the S&P 500 Since Dot-Com Bubble

DailyFX forecasts on a variety of currencies such as the US Dollar or the Euro are available from the DailyFX Trading Guides page. If you’re looking to improve your trading approach, check out Traits of Successful Traders. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide.

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

DISCLOSURES

News & Analysis at your fingertips.