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
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
GBP/USD
Mixed
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
Bearish
Gold
Bearish
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
Bitcoin
Mixed
More View more
S&P 500 Positions to Reverse Higher, Threatening US Dollar

S&P 500 Positions to Reverse Higher, Threatening US Dollar

2011-06-24 02:58:00
Ilya Spivak, Sr. Currency Strategist
Share:

S&P 500 – As we suspected yesterday, the pullback from resistance at 1292.51, the 38.2% Fibonacci retracement level, appears overwhelmingly corrective. Prices failed to breach resistance-turned-support at a falling trend line connecting major lows since early May, producing a well-defined bullish Dragonfly Doji instead. Further gains are likely ahead, with a break of the 38.2% level exposing the 50% retracement at 1303.20.

SP_500_Positions_to_Reverse_Higher_Threatening_US_Dollar_body_Picture_5.png, S&P 500 Positions to Reverse Higher, Threatening US Dollar

CRUDE OIL Crude has now invalidated the bullish Hammer candlestick indentified earlier this week, although the broad range in place above the 61.8% Fibonacci extension level ($92.11) remains broadly intact. A break below support exposes the 76.4% level at $89.17. The upside is capped by a falling channel top, now broadly aligned with the 50% level at $94.49.

SP_500_Positions_to_Reverse_Higher_Threatening_US_Dollar_body_Picture_6.png, S&P 500 Positions to Reverse Higher, Threatening US Dollar

GOLD As we suspected yesterday, a bearish Spinning Top candlestick pattern below resistance at the midline of a rising channel that had confined price since early May preceded a selloff, with prices taking out the formation’s bottom and opening the door to further downside. Immediate follow-through may not materialize, with prices taking some time to consolidate into the week-end, but broad positioning favors a decline to test the 38.2% Fibonacci extension level at $1509.49 over the days ahead. Importantly, gold has been exceptionally choppy lately, so reading too much into any given technical setup at this early stage seems premature until significant momentum materializes.

SP_500_Positions_to_Reverse_Higher_Threatening_US_Dollar_body_Picture_7.png, S&P 500 Positions to Reverse Higher, Threatening US Dollar

US DOLLAR Prices took out resistance at 9645.55, the 61.8%Fibonacci retracement level, but negative RSI divergence warns of near-term weakness ahead. The upside is capped by the 76.4% Fib at 9691.19, with the 61.8% barrier now recast as near-term support. A break below that exposes the 50% retracement at 9608.66 as well as the underside of a rising channel set from the June 7 low.

SP_500_Positions_to_Reverse_Higher_Threatening_US_Dollar_body_USD_062411.png, S&P 500 Positions to Reverse Higher, Threatening US Dollar

For real time news and analysis, please visit http://www.dailyfx.com/real_time_news

To receive future articles by email, please contact Ilya at ispivak@dailyfx.com

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

DISCLOSURES

News & Analysis at your fingertips.