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
More View more
Real Time News
  • The Hang Seng Index (HSI) advanced 3.3% as investors shrugged off regulatory concerns. Will this rebound last? - Tencent (+8.8%) - Alibaba (+6.6%) - Meituan (+8.9%) - Hang Seng Tech Index (7.33%) https://t.co/dmTEa3J4we
  • Trading bias allows traders to make informative decisions when dealing in the market. This relates to both novice and experienced traders alike. Start learning how you may be able to make more informed decisions here: https://t.co/rz7fqhRoMG https://t.co/X6Uvr2dsj0
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 94.19%, while traders in France 40 are at opposite extremes with 69.19%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/EqA6PJH4Yt
  • Emotions are often a key driving force behind FOMO. If left unchecked, they can lead traders to neglect trading plans and exceed comfortable levels of risk. Read on and get your emotions in check here: https://t.co/eILWbFgHRE https://t.co/XCHxCSz9XZ
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.29% 🇳🇿NZD: 0.22% 🇬🇧GBP: 0.18% 🇪🇺EUR: 0.11% 🇨🇭CHF: 0.10% 🇦🇺AUD: 0.03% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/5W5WVMPcrH
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: Wall Street: 0.00% FTSE 100: -0.10% US 500: -0.13% France 40: -0.15% Germany 30: -0.28% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/p1qqTNx2Mz
  • RT @KyleR_IG: A history of US fiscal and monetary stimulus and the US 10 year yield: more stimulus, higher rates. When it comes to QE, mor…
  • 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/kODPAfs2Iz https://t.co/DfG4YuKM4U
  • Wall Street Futures Update: Dow Jones (+0.03%) S&P 500 (-0.11%) Nasdaq 100 (-0.28%) [delayed] -BBG
  • Volatility follows the FOMC's slow approach to its second taper, but neither the Dollar nor the S&P 500 have held their charge. With US GDP ahead, expect the echoes of the central bank's warnings and watch $EURUSD and $USDCAD https://www.dailyfx.com/forex/video/daily_news_report/2021/07/29/EURUSD-Slow-Trigger-Reversal-and-USDCAD-Yet-to-Detonate-After-Fed-Before-US-GDP.html https://t.co/BCUTSX0WNY
S&P 500 Technical Analysis: Symmetrical Wedge Highlights Congestion

S&P 500 Technical Analysis: Symmetrical Wedge Highlights Congestion

James Stanley, Senior Strategist

To receive James Stanley’s Analysis directly via email, please sign up here.

Talking Points:

  • S&P 500 Technical Strategy: Flat
  • S&P 500 continues to congest ahead of FOMC on Thursday.
  • Breakout of symmetrical wedge could define positioning for future positions.

The S&P 500 continues to congest within a symmetrical wedge, and as we identified last week this continued congestion could be a sign of ‘something larger.’ Standard breakout logic should apply as the S&P is continuing to carve out both lower-highs and higher-lows.

Breaks of resistance at 1,995 could open the door for long positions up to 61.8% Fibonacci resistance at 2,021, prior price action support of 2,040 and then 76.4% Fibonacci resistance at 2,065.5.

Alternatively, breaks of support at 1,905 could be treated bearishly with targets cast at 1,886.5 (23.6% Fibonacci retracement of the ‘secondary move’ from October 2011 to the May 2015 high), 1,833.5 (the 8/24 ‘panic’ low), 1,819 (the October 2014 low), and then 1,791 (the 23.6% retracement of the ‘major move’ comprising the financial collapse low to the May 2015 high).

Because of the short-term nature of this symmetrical wedge, traders should hold certain to their entry and stop levels, as whipsaw ahead of the Fed could provide numerous opportunities for false breakouts.

Ahead of the Fed – the probable move would likely be lower given the economic concerns from Asia, and the fact that additional-Asian weakness could bring US stocks lower as we near FOMC. As we get closer to Thursday, that probable move flips to the up-side as the Fed has had a tendency to stoke US stock prices higher with commentary and policies of support.

S&P 500 Technical Analysis: Symmetrical Wedge Highlights Congestion

--- Written by James Stanley, Analyst for DailyFX.com

To receive James Stanley’s analysis directly via email, please SIGN UP HERE

Contact and follow James on Twitter: @JStanleyFX

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

DISCLOSURES