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
Oil - US Crude
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
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
Bearish
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
USD/JPY
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
More View more
Breaking news

President Trump formally announces beginning of process to terminate Hong Kong's special treatment status. Announces US will terminate relationship with the World Health Organization.

Real Time News
  • "US Dollar, Nasdaq, Chinese Yuan React to Trump-China Presser" -via @DailyFX President Trump formally announces the United States will revoke Hong Kong’s preferential treatment amid escalating China tension. Where might $USD, $NDX, $CNH head next? Link: https://www.dailyfx.com/forex/market_alert/2020/05/29/usd-cnh-ndx-price-us-dollar-chinese-yuan-nasdaq-china-tension-trump-press-conference.html
  • The trio of central banks overseeing the commodity currencies have already cut their main rates to all-time lows. Get your market update from @CVecchioFX here: https://t.co/OSUXrN5P3j https://t.co/kYe8QpfX0K
  • Euro Breakout or Fake-Out? EUR/USD, EUR/JPY Surge to Fresh Highs https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/daily_fundamentals/2020/05/29/Euro-Breakout-or-Fake-Out-EUR-USD-EUR-JPY-Surge-JS-Euro-to-US-Dollar.html https://t.co/LHfiPGsEW4
  • Even the Hong Kong Dollar is up after that press conference...
  • Eminis treating that press conference like 'that was it?' Market seemed to have fully accounted for the HK special status situation
  • Trump: - Hong Kong is no longer sufficiently autonomous - Beginning the process to eliminate special treatments given to Hong Kong $SPX
  • Trump: - Taking action to protect the U.S. financial system and directing working group to study the differing practices of Chinese companies listed on U.S. exchanges $DXY $NDX
  • President Trump is listing out his accusations for China. Normally, would consider this lead up to sanctions, but he doesn't always follow that playbook
  • President Trump says investment firms should not be subjecting their clients to investing in Chinese companies that do not play by the same rules $FXI
  • Quite the strong language here, #SP500, #DowJones turning lower as #USD rises after brief 'risk-on' spike on reports Trump is not planning to quit the phase-one deal with China. Trump also said the US is 'terminating relationship' with the #WHO https://t.co/nc9wFepYyZ
The S&P 500 Moves One Step Closer to the Edge

The S&P 500 Moves One Step Closer to the Edge

2016-05-16 09:35:00
Paul Robinson, Strategist
Share:

What’s inside:

  • The S&P 500 is one step closer to triggering the neckline of the H&S pattern
  • On Friday, the Dow did so, marginally
  • Continuing to watch the Nasdaq as the down-side leader

The S&P 500 (FXCM: SPX500) is close to triggering the neckline of the ‘head-and-shoulders’ pattern we have been discussing this past week, while the Dow (FXCM: US30) actually did so marginally on Friday. The trend-line in the S&P which acted as minor support off the Feb 11 low gave-way on Friday, now exposing the neck-line and May 6 swing low around the 2037/35 area. A break below 2035 on a daily closing bar basis opens the door up for a move towards 2000 and lower.

Once (if) the S&P breaks down, then the path of least resistance should become firmly lower across the board. Watch how things play out in the Nasdaq as well. While it doesn’t have the same technical configuration as the S&P and Dow, it has been the leader to the down-side since peaking in April. It should continue to do so, but isn’t necessary in order for the market to start guiding lower; a rotation effect could come into play if sellers have exhausted themselves in tech-heavy stocks.

We are still taking it one day at a time until a confirmation break occurs. If the S&P doesn’t break the neckline, a bounce back towards the upper trend-line off the 4/20 high could ensue. If this were to happen the H&S would likely become a descending triangle, which could ultimately hold the same bearish fate, but via an alternate path and timeline.

The height of the H&S dictates a measured move towards about 1960 in the S&P and roughly 16900 for the Dow. The Nasdaq 100 would likely sink towards about 4,100, which would bring further clarity to a very large macro-top under development since last summer - This could lead to a much more insidious decline in H2 2016/H1 2017. More on that another time, for now we will focus on what is directly in front of us.

S&P 500 (Dow) Daily

The S&P 500 Moves One Step Closer to the Edge

Find out what separates successful from unsuccessful traders.

---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.