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
S&P 500: Record Highs (Yay), Hourly Chart Guides

S&P 500: Record Highs (Yay), Hourly Chart Guides

Paul Robinson, Strategist

What’s inside:

  • New record highs, ‘yay’
  • Swing trades from either side not appealing
  • Hourly chart as a guide for short-term traders

The S&P 500 made a solid move into new record territory yesterday. The idea of buying into this current leg up for anything outside of a ‘quick-flip’ doesn’t look appealing; bottom-line, it is tough to be a buyer with swing-trade intentions after such a large advance since post- ‘Brexit’. And even harder to be a short into strong momentum.

In the short-term, the market remains overbought, but as we are seeing overbought is becoming more overbought as new highs get recorded.

Focusing on the hourly chart: Yesterday we noted a channel developing at one angle, but since pushing higher that angle has changed. The channel dating back to Monday will be our guide in the near-term. Stay within or above and a bullish bias will sustain. A break below doesn’t give the bears a tremendous advantage, but it could mark the start of some type of decline.

Short-term resistance is penciled in at the upper parallel, currently in the low 2060s. Support is the lower parallel; below there the trend-line off the 6/27 low; and not far below there the record high the market broke above at 2137. 2127 and 2112 are a bit too far below to worry about just yet.

SPX500 Hourly

S&P 500: Record Highs (Yay), Hourly Chart Guides

Check out one of our many free guides for help in sharpening your analytical and trading skills.

---Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter at @PaulRobinsonFX.

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

DISCLOSURES