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
  • it's not Bitcoin, but $ETH is working on its own breakout at the moment back above the 4k marker after the #Bitcoin ATH https://t.co/MC3el7SaMS
  • $BTCUSD hits $66,000. Everyday is Bitcoin day
  • $BTCUSD hits 65,000. Happy Bitcoin day everyone
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 91.49%, while traders in USD/JPY are at opposite extremes with 74.20%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/TBOioxBaqY
  • Commodities Update: As of 13:00, these are your best and worst performers based on the London trading schedule: Silver: 1.67% Gold: 0.62% Oil - US Crude: -1.03% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/3L8HLnD5v8
  • #Bitcoin - Daily Chart - breakout to ATH . . Watch the close. . . https://t.co/W75XZqabYP
  • Now that the Bitcoin ATH is out of the way - BTC +2.1% @ $65,540 - can we concentrate on Ethereum #btc #bitcoin #eth #ethereum https://t.co/jka7AcE27J
  • Hit series ‘Squid Game’ expected to drive subscriber growth into year end. Get your market update from @RichardSnowFX here:https://t.co/fQBG9dlLfG https://t.co/4KjKPA6u8d
  • $EURUSD res has held at that 1664 spot but buyers stepped-in for some higher-low support, right around prior resistance. could have some continuation left here, next res zone 1700-1736 $EURUSD move will be key to #DXY dynamics https://t.co/oSPWzxUtCg https://t.co/0jBF75ztJe
  • Mid-Week Market Update session with special guest @tastytrade's @tastytradeRyan starting now -- join here: https://t.co/2VlNFcWn8R
SPX500 Technical Analysis: Higher-Low Ahead of US Earnings

SPX500 Technical Analysis: Higher-Low Ahead of US Earnings

James Stanley, Senior Strategist

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

Talking Points:

  • S&P 500 Technical Strategy: Limited out of previous setup; currently flat.
  • A heavy week of data may bring in a deeper retracement that could potentially be used for top-side reentries.
  • If you’re looking for trading ideas, check out our Trading Guides. And if you want something more short-term in nature, check out our SSI indicator.

In our last article we looked at another trend-side entry in the S&P, using recent support structure to plot potential re-entries. The support structure looked at in our last article utlized the move seen last year, taking the top at 2,137.10 to the ‘Chinese Black Monday’ low on August 24th. And while a lower-low was printed in January and again in February, that Fibonacci retracement has continued to offer usable levels for traders, most recently offering a top-side re-entry off of the 76.4% retracement at 2,065.45.

As of right now, price actionappears to be carving out a higher-low point of support at the same level that set the high on 12/29-12/30 of 2015; just before price action began the deluge to kick off a whole new stream of worries in the new year. This is a pivotal level at 2,082.10, and over the past week we’ve seen price action find resistance, break above, and now set support at this level; giving the appearance of yet another higher-low.

But before chasing the up-trend, traders would likely want to peruse the economic calendar to see the headline risk for the week ahead: One-third of the S&P 500 is reporting earnings this week, with a heavy emphasis on tech companies, which can often have a leading quality for shares as technology investments usually go hand in hand with bullish economic forecasts. If tech earnings disappoint, if guidance is downgraded and, in-turn, if shares move lower in response to this batch of earnings reports, traders may be able to look for a deeper retracement within the pre-defined Fibonacci structure, looking for support at 2,065.45, or 2,021.12 (the 38.2% retracement of that prior major move).

The likely determinant as to whether this uptrend remains or whether it takes a down-side turn will be FOMC on Wednesday. Should the Fed successfully do what they’ve been doing, provide support to markets by offering dovish implications around down-graded forecasts, the up-trend in the S&P could certainly continue, with eyes on prior resistance points of 2,111.37 (near-term swing high), 2,116.40 (prior swing-high), 2,125 (minor psychological level) and then the all-time high of 2,137.10.

SPX500 Technical Analysis: Higher-Low Ahead of US Earnings

Created with Marketscope/Trading Station II; prepared by James Stanley

--- 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