S&P 500, FTSE 100 Analysis and News
S&P 500 | Pivotal Resistance In Focus
The grind higher in the S&P 500 has come to halt as the index moved within close vicinity to pivotal resistance at 2999, which marks the 200DMA. That said, while the S&P 500 has seen a slight pullback from its post-crash highs, the initial focus will be on the 2900 level for support. Failure to hold puts the 50% Fibonacci retracement back into play at 2790. While US-China tensions are becoming increasingly important, the S&P 500 remains very choppy with the index failing to establish a notable trend. However, with a lot of positive news priced in, risks are tilted to the downside.
| Change in | Longs | Shorts | OI |
| Daily | 9% | -7% | 2% |
| Weekly | 6% | -13% | -2% |
S&P 500 Price Chart: Daily Time Frame
Source: IG Charts
FTSE 100 | Rangebound Trading Persists
The FTSE 100 continues to trade in rangebound fashion with the index sticking between the 38.2% and 50% Fibonacci retracement. On the topside, rises are likely to remain capped at 6110-20, which marks the weekly highs. As concerns rise over US-China relations, we see risks to the downside, raising the prospect of a test at 5800. However, key support is situated at 5500.
| Change in | Longs | Shorts | OI |
| Daily | -5% | 1% | -2% |
| Weekly | 51% | -37% | -2% |
FTSE 100 Price Chart: Daily Time Frame
Source: IG Charts
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--- Written by Justin McQueen, Market Analyst
Follow Justin on Twitter @JMcQueenFX
