S&P 500 Rebound Fails to Overturn Yesterday's Bearish Technical Signal
THE TAKEAWAY – Today’s rebound in the S&P 500 has failed to overturned yesterday’s bearish candlestick signal, hinting the safe-haven US Dollar will resume its advance after a pullback.
S&P 500 – Prices rebounded from support at 1197.29, the 23.6% Fibonacci extension level, but the rally fell short of overturning the downside-favoring Bearish Engulfing candlestick pattern identified yesterday (which would require a daily close above the formation’s high at 1235.40. Critical resistance remains at 1230.90, the top of the range in place early August.
CRUDE OIL – Prices negated the bearish Harami candlestick pattern produced yesterday with a break above downward-sloping trend line resistance set from April’s swing high, exposing support-turned-resistance at $90.50. The trend line, now at $86.38, has been recast as near-term support.
GOLD – Prices produced a Piercing Line bullish candlestick pattern above support at the bottom of a modestly rising channel carved out since late September. Near-term resistance stands at $1660.73, the 50% Fibonacci retracement level, with a break above that exposing the 61.8% level at $1668.77. Alternatively, a break below the 38.2% Fib at $1652.68 exposes the 23.6% boundary at $1642.73.
US DOLLAR – Prices pulled back from resistance at 9800, the 23.6% Fibonacci retracement, to retest the broken falling trend established from the October 4 swing high as support. The pullback can be seen as corrective absent a daily close below 9709.
4hr Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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