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.



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

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Real Time News
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out
  • RT @FxWestwater: $NZDUSD Struggles as RBNZ Hike Bets Dim. Australian Retail Sales, Chinese Data Near Link: https:/…
  • Heads Up:🇯🇵 BoJ Monetary Policy Meeting Minutes due at 23:50 GMT (15min)
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here:
  • Senate GOP blocks bill combining debt ceiling with government funding - BBG
  • The Consumer Price Index, better known by the acronym CPI, is an important economic indicator released on a regular basis by major economies to give a timely glimpse into current growth and inflation levels. Learn how to better understand CPI here:
  • Japan says North Korea may have launched ballistic missile Kyodo via BBG
  • Senate GOP has votes to block debt limit, government funding bill - BBG
  • While Bitcoin is really buried into that support at the moment, Ethereum has been more range-bound of recent and as of this writing, price is not quite close to range support. Get your market update from @JStanleyFX here:
  • 🇰🇷 Consumer Confidence (SEP) Actual: 103.8 Previous: 102.5
S&P 500, Russell 2000 Outlook: Approaching an Inflection Point

S&P 500, Russell 2000 Outlook: Approaching an Inflection Point

Justin McQueen, Strategist

S&P 500, Russell 2000 Price Analysis & News

  • Questions Raised After Risk Rally Peters Out
  • S&P 500 | Approaching Inflection Point
  • Russell 2000 | Risks Remain Skewed to the Downside

How to Invest During a Recession: Investments & Strategy

S&P 500 | Approaching Inflection Point

Yesterday’s risk rally saw a notable turnaround late in the US session, consequently raising concerns over the recent upside. As noted last week, we feel that equities have been in a bear market rally and thus we do not rule out a revisit to the yearly lows. Uncertainty remains rife as investors continue to gauge the impact of coronavirus on the economy. Tomorrow will provide another indication with the latest jobless claims data due to be released. With gains in cyclical stocks stalling relative to defensives the S&P 500 faces hurdles in the near term.

S&P 500 Levels to watch

On the topside, near-term resistance is situated at 2728, which marks the June 2019 lows. While the S&P 500 had broken above this level yesterday, failure to close above signals possible exhaustion in the recent upside, raising the risk of renewed selling in the index. Alongside this, key resistance is situated at the 2790-2800, where the 50% Fib retracement of the Feb-Mar sell-off resides. We see this level as a key inflection point for the S&P 500. In terms of support, the 200WMA sits at 2648 where a closing break below puts 2500 back into focus.

S&P 500 Price Chart: Weekly Time Frame

S&P 500, Russell 2000 Outlook: Approaching an Inflection Point

Source: IG Charts

Russell 2000 | Risks Remain Skewed to the Downside

As we look at smaller-cap stocks, the 1200 level is proving to be a tough nut to crack for the Russell 2000 with index yet again failing to make a break above. As such, the index has continued to close below the 23.6% Fibonacci retracement situated 1141, which we feel keeps risks skewed to the downside.

Russell 2000 Price Chart: Weekly Time Frame

S&P 500, Russell 2000 Outlook: Approaching an Inflection Point

Source: IG Charts

--- Written by Justin McQueen, Market Analyst

Follow Justin on Twitter @JMcQueenFX

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