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
Oil - US Crude
Bearish
Wall Street
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
Gold
Mixed
GBP/USD
Bullish
USD/JPY
Mixed
More View more
Real Time News
  • Wonder what insight on the situation with China will come out of this. @ZabelinDimitri has the background - https://www.dailyfx.com/forex/fundamental/article/special_report/2020/05/25/AUD-May-Fall-on-Australia-China-Tensions-Euro-Eyes-500b-Proposal.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Spivak&utm_campaign=twr https://t.co/Szs7ii3ufu
  • HEADS UP: Australian PM Scott Morrison is due to speak at the National Press Club in Canberra in approx. 2 hours (2:30 GMT). https://t.co/kImzlZLG0k #AUDUSD
  • 🇸🇬 GDP Growth Rate YoY Final Actual: -0.7% Expected: -1.5% Previous: 1% https://www.dailyfx.com/economic-calendar#2020-05-26
  • 🇸🇬 GDP Growth Rate QoQ Final Actual: -4.7% Expected: -7.4% Previous: 0.6% https://www.dailyfx.com/economic-calendar#2020-05-26
  • SINGAPORE Q1 GDP -4.7% q/q annualized vs -8.2% expected, -10.6% earlier estimate #USDSGD
  • Heads Up:🇸🇬 GDP Growth Rate YoY Final due at 00:30 GMT (15min) Actual: -0.7% Expected: -1.5% Previous: 1% https://www.dailyfx.com/economic-calendar#2020-05-26
  • Heads Up:🇸🇬 GDP Growth Rate QoQ Final due at 00:30 GMT (15min) Actual: -4.7% Expected: -7.4% Previous: 0.6% https://www.dailyfx.com/economic-calendar#2020-05-26
  • On Friday, EUR/GBP surged to an over six-week high at 0.8940 then closed the weekly candlestick in the green with a 2.3% gain. Get your $EURGBP market update from @malkudsi here: https://t.co/ln09Ijn7rd https://t.co/oOiE19ZCuW
  • Heads Up:🇸🇬 GDP Growth Rate YoY Final due at 00:00 GMT (15min) Expected: -1.5% Previous: 1% https://www.dailyfx.com/economic-calendar#2020-05-26
  • Heads Up:🇸🇬 GDP Growth Rate QoQ Final due at 00:00 GMT (15min) Expected: -7.4% Previous: 0.6% https://www.dailyfx.com/economic-calendar#2020-05-26
The S&P 500 Jets Higher, Faces Test at Resistance

The S&P 500 Jets Higher, Faces Test at Resistance

2016-05-11 10:10:00
Paul Robinson, Strategist
Share:

What’s inside:

  • The S&P 500 propelled higher following test of inverse H&S neckline
  • 2078/83 came under assault, trend-line joins resistance
  • Current short-term trend is higher, key support/resistance zones in focus for further guidance

Yesterday, we saw a nice swing higher in the market following a neckline retest of the inverse head-and-shoulders pattern in the S&P 500 (FXCM: SPX500) we are using as our short-term guide. The pre-cash session pullback took the market down into support below 2066, further etching that area out as a key spot in the near-term.

The day’s strength saw the 2078/83 resistance zone pressed during late-day trading. There is a trend-line off the April 20 peak in the vicinity of horizontal resistance, which the market must now also contend with before moving to higher ground. This morning futures are weakening a bit from resistance, increasing the likelihood the trend-line (bottom of rising channel) off the May 6 low will come into play as support. As long as it holds, then the short-term trend remains intact along with the inverse H&S.

Strength back into the 2078/83 area will be watched closely, as a break above opens the door up for a move towards 2095/100, which is roughly where the measured move target of the H&S pattern lies along with actual price resistance.

However, if buyers can’t chomp through resistance and a rejection results in a drop below support, then the inverse H&S formation will come under fire and alternative paths will need to be considered.

SPX500/2-hour

The S&P 500 Jets Higher, Faces Test at Resistance

It’s a little pre-mature to discuss, but a traditional ‘head-and-shoulders’ pattern could be forming if we see the daily chart soon rollover. We will delve into that further should it become relevant, as these price patterns aren’t until they are.

Different day, same approach – Quick 1 to 3-day hitters preferred until clarity on the bigger picture presents itself. At this time, until the market proves the current upswing ‘incorrect’ we will lean on support and trend structure remaining positive in the short-term with prospects of pushing back further into the broader daily resistance zone between 2083/116. But, we will be quick to ‘turn-and-burn’ on that stance should resistance prove to be formidable and support levels give way.

Start improving your trading today and find out what traits successful traders typically possess.

---Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter @PaulRobinsonFX, or email him directly at instructor@dailyfx.com.

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

DISCLOSURES

News & Analysis at your fingertips.