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
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
Mixed
Wall Street
Bearish
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • RT @tracyalloway: Yields on the junkiest of junk bonds (CCC-rated) hit another all-time low, coming in at just 5.66%. https://t.co/qGi3ETjG…
  • RT @FxWestwater: Euro Technical Forecast: $EURUSD, $EURAUD, $EURJPY Charts to Watch Link: https://www.dailyfx.com/forex/market_alert/2021/05/12/Euro-Technical-Forecast-EURUSD-EURNZD-EURAUD-Charts-to-Watch.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Westwater&utm_campaign=twr https://t.co/fa6WSjjYpM
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: -0.08% 🇪🇺EUR: -0.10% 🇨🇭CHF: -0.13% 🇯🇵JPY: -0.20% 🇳🇿NZD: -0.31% 🇦🇺AUD: -0.32% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/d3C8KTv536
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 89.21%, while traders in GBP/USD are at opposite extremes with 68.58%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/shh3jAwo7Z
  • 🇦🇺 Building Permits MoM Final (MAR) Actual: 17.4% Expected: 17.4% Previous: 20.1% https://www.dailyfx.com/economic-calendar#2021-05-12
  • Biden EPA expands fuel waivers to blunt gas shortages - BBG #OOTT $CL_F
  • The US Dollar is still struggling against most ASEAN currencies. USD/SGD remains downside-focused despite recent gains. USD/THB is eyeing a triangle. USD/IDR and USD/PHP may point lower. https://t.co/s3c3Mhvq6F
  • USD/Yuan reference rate set to 6.4258 - BBG $USDCNH
  • South Korea says 664k people have received a 2nd Covid vaccine dose - BBG
  • Heads Up:🇦🇺 Building Permits MoM Final (MAR) due at 01:30 GMT (15min) Expected: 17.4% Previous: 20.1% https://www.dailyfx.com/economic-calendar#2021-05-12
S&P 500 Techs: Short-term Trading Outlook

S&P 500 Techs: Short-term Trading Outlook

Paul Robinson, Strategist

What’s inside:

  • Daily chart not very clean, but opportunity still exists
  • Need to focus on short-term time-frames and keep expectations in check
  • Hourly ascending wedge taking shape

In yesterday’s piece we took a look at the S&P 500 from a daily view, and overall it’s not a very clean picture, is it? The late summer doldrums have thus far morphed into the fall doldrums, but with larger daily ranges – that’s our silver lining, unfortunately. But, with that, the ranges are bigger, so for you ‘hit-n-run’ traders there are opportunities as long as you keep your trade time-frame short and sweet and your expectations tempered. Trade what the market gives you.

Recent price action, most visible on the hourly (cash session hours), is working the S&P towards a one-way move. Over the past week an ascending wedge has been developing, which should be ready to break very soon.

Ascending wedges are often viewed as a bullish development given the higher lows. However, they can certainly break against those higher lows, and given the neutral trend environment we are in, which way we break is really a 50/50 proposition. If we were in a strong uptrend we could assign a higher probability of a breakout to the top-side, but that is not the case here. Bottom line: don’t predict the break, react to it.

The mid-2140s to ~2150 has been problematic for the market. It was once an area of support during late September/early October, but has since turned into a pretty formidable area of short-term resistance. Despite the market holding onto intermediate-term support (horizontal/trend-line off Feb 11 lows) it has been unable to hurdle the less important resistance area. This is beginning to add an additional layer of importance to 2148/50.

A clean break above 2150 will put ball in the bulls’ court, bringing the trend-line off the 9/7 high into focus (~2162 at this time), 2170, 2175, and 2179. A break to the down-side will bring into play 2133, 2124, and the important swing low at 2115.

S&P 500: Hourly

S&P 500 Techs: Short-term Trading Outlook

Created with Tradingview

So for now, we will continue to operate under the assumption the market will provide limited opportunities and take quick-hitter trades between short-term levels until the daily chart cleans up.

Start improving your technical analysis skills today and check out one of our several free trading guides designed for traders of all experience levels.

---Written by Paul Robinson, Market Analyst

To receive Paul’s analysis directly via email, please SIGN UP here.

You can follow Paul on Twitter at @PaulRobinonFX.

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

DISCLOSURES