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
Bullish
Oil - US Crude
Bullish
Wall Street
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
Gold
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
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • #Oil prices saw a reprieve to the recent selling pressure but remain at risk while below downtrend resistance. Here are the levels that matter on the #WTI technical chart. Get your #commodities update from @MBForex here: https://t.co/CcXsF3JCMH https://t.co/RUmS1cX52v
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/5uSWKoLkd6 https://t.co/boEI8RuQdC
  • The growth-linked New Zealand Dollar may rise on the upcoming #RBNZ rate decision following rosy economic data. However, downside potential in the S&P 500 could offset $NZDUSD gains. Get your #currencies update from @ddubrovskyFX here: https://t.co/LfCe6C6G3P https://t.co/kUeBxxeaEf
  • It was a quiet week in Aussie as $AUDUSD put in its second consecutive week of indecision. But taking a more granular look highlights the potential for a reversal scenario. Get your #currencies update from @JStanleyFX here: https://t.co/PPK20nubAf https://t.co/0nfmRRFNnz
  • The S&P 500 pushed the market's comfort with a head-and-shoulders pattern through Friday's close. What should we look for in technical patterns, overlapping fundamental tides and speculative positioning for the likes of $EURUSD next week? https://www.dailyfx.com/forex/video/daily_news_report/2020/09/19/EURUSD-Pressure-Building-while-Anxious-Traders-Weigh-Did-SP-500-Break.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/lgVJVwi8th
  • Sterling remains trapped by overarching fundamentals drivers and both $GBPUSD and $EURGBP are going to have to wait until the Brexit dust settles. Get your #currencies update from @nickcawley1 here: https://t.co/vF1K1cy0nd https://t.co/NSA7qiQihc
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here:https://t.co/1oygcFMFNs https://t.co/d9EmTOHyTv
  • Traders tend to overcomplicate things when they’re starting out in the forex market. This fact is unfortunate but undeniably true.Simplify your trading strategy with these four indicators here:https://t.co/A4dqGMPylo https://t.co/xqbUxwWgTZ
  • An economic calendar is a resource that allows traders to learn about important economic information scheduled to be released. Stay up to date on the most important global economic data here: https://t.co/JdvW6HNuqV https://t.co/Gi8LHCT5sB
  • The AB=CD pattern is simple once you know how to spot it and draw the proper Fibonacci retracements. Make your trading strategy as simple as ABCD here: https://t.co/AKmlmaAZBS https://t.co/FFmRYyx4ou
S&P 500: Unofficial End of Summer is Here, Price Movement Set to Pick Up

S&P 500: Unofficial End of Summer is Here, Price Movement Set to Pick Up

2016-09-06 12:11:00
Paul Robinson, Strategist
Share:

What’s inside:

  • Challenging market conditions should change as market participation returns
  • Bull flag developing within construct of rising parallels
  • Benefit of the doubt with the bulls still, but break of key levels would quickly change that

The S&P 500 has been a challenging index to trade since around the middle of July, as summer trading conditions and exhaustion post-Brexit hit the market. That is set to change with the most volatile period of trading for the year upon us. The fall is typically one of the more exciting times of the year as trading volume and volatility rises, even if the market remains strong and no major risk-off event unfolds. The Labor Day holiday in the US (observed yesterday) is the unofficial end of summer as market participants return back to their desks during the week or so after.

The current technical structure going back to the late June lows continues to remain pointed higher, despite the lack of direction in recent weeks. We should soon see a resolution of the horizontal price action as volume picks up.

Giving the uptrend into record high territory the benefit of the doubt, the sideways chop is currently viewed as a consolidation period before another leg higher. The price action over the past three weeks is taking the shape of a bull-flag on the verge of breaking.

The bull-flag has been developing within the construct of a differing angled set of parallels which entails all of the chop going back to the middle of July. A break higher will likely find resistance at the upper parallel in the 2205/10 vicinity.

Should the market roll over from here, we will be on alert for a new closing low below the Thursday low at 2156, and more importantly the 8/2 low at 2147. A break below the latter of those two levels would usher in the likelihood of seeing a decline below the old record high in 2015 at 2137 and expose the trend-line off the Feb 11 retest low.

S&P 500: Unofficial End of Summer is Here, Price Movement Set to Pick Up

Until the market can break free in either direction in the coming days, we will continue to patiently wait. As stated earlier, though, the trading should begin to pick up as we head further into September and opportunities are likely to begin presenting themselves in larger numbers than in recent weeks.

Find out what make characteristics profitable traders have in our free trading guide, “Traits of Successful Traders.”

---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