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.

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
EUR/USD
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
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
Mixed
Gold
Mixed
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • US 154-Day Bills Draw 0.100% Primary Dealers Awarded: 63.6% Indirect Bidders Accepted: 32.3% Direct Bidders Accepted: 4.1% B/C Ratio: 3.29
  • The planned UK budget this fall is cancelled according to government official - BBG
  • Fed Chair Powell: - Would be very difficult to create a facility that reaches small businesses
  • $nasdaq trying to turn the tide, testing support at prior resistance, 23.6 of the March-Sept run $qqq $nas https://t.co/knXzTzwR0a https://t.co/RkVykhmdWv
  • Fed's Evans says unemployment rate may drop to 7% in 2020, 5.5% by end of 2021 - BBG
  • Going live for this week's equity market webinar in 10 minutes talking $QQQ outflows, $DAX technical levels and more Join here - https://t.co/nTpoA2moq4
  • Forex Update: As of 14:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 0.19% 🇪🇺EUR: -0.33% 🇨🇦CAD: -0.36% 🇨🇭CHF: -0.39% 🇳🇿NZD: -0.97% 🇦🇺AUD: -0.99% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/suQZHy8zRk
  • Fed Chair Powell: - Economic activity remains well below where it was before the pandemic - Main street loans may not be best for every business - Many of our programs require support of Treasury
  • Indices Update: As of 14:00, these are your best and worst performers based on the London trading schedule: FTSE 100: 1.10% France 40: 0.61% Germany 30: 0.39% Wall Street: 0.02% US 500: -0.26% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/E8WyJ2zpXq
  • Heads Up:🇺🇸 Fed Evans Speech due at 15:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-09-23
S&P 500 Index Technical Analysis: 3,390 the Key Resistance to Watch

S&P 500 Index Technical Analysis: 3,390 the Key Resistance to Watch

2020-08-23 12:00:00
Margaret Yang, CFA, Strategist
Share:

S&P 500 Index Technical Outlook:

The S&P 500 Index is trending up nicely in the past five months, registering a total 54.7% gain from the trough observed in late March 2020. The index is about to challenge its all-time high of 3,390, which is a key resistance to watch from a technical point of view.

The index is trending up in an ‘ascending channel’ as highlighted in the chart below, the lower bound of which serves as a support level too. The overall trend remains bullish as its 20-, 50- and 100-Day Simple Moving Averages (SMAs) are all trending upward.

A meaningful breakout above the 3,390 resistance will help to open the door for more upside towards the next major resistance at 3.640 – the 261.8% Fibonacci extension level.

S&P 500 Index – Daily Chart

S&P 500 Index

The momentum indicators, however, have flagged the risk of a potential technical pullback.

The MACD indicator formed a ‘bearish crossover’ last week (circle on the chart), which suggests that near-term momentum is biased more towards the downside.

The RSI indicator has turned south from the overbought zone beyond 70.0 this week, suggesting further pullback from the recent peak is possible.

Immediate support levels could be found at 3,358 (200% Fibonacci extension), followed by 3,270 (lower bound of the channel) and then 3182 (161.8% Fibonacci extension).

S&P500 Index – Momentum Indicators

S&P 500 Index
Building Confidence in Trading
Building Confidence in Trading
Recommended by Margaret Yang, CFA
Don’t give into despair, make a game plan
Get My Guide

--- Written by Margaret Yang, Strategist for DailyFX.com

To contact Margaret, use the Comments section below or @margaretyjy on Twitter

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

DISCLOSURES