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.

Free Trading Guides
EUR/USD
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
Oil - US Crude
Mixed
Wall Street
Bullish
Gold
Mixed
GBP/USD
Bullish
USD/JPY
Bullish
More View more
Real Time News
  • Has the ECB been saved? Find out from @CVecchioFX here: https://t.co/eiXfOTyGa6 https://t.co/Znozwxgcak
  • Texas COVID-19 cases increase at 2.4%, same as prior 7-day average - BBG
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇪🇺EUR: 0.91% 🇳🇿NZD: 0.64% 🇨🇭CHF: 0.59% 🇬🇧GBP: 0.17% 🇨🇦CAD: -0.02% 🇯🇵JPY: -0.23% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/j3MpbrNtG4
  • RT @SecPompeo: I applaud @Nasdaq’s actions to require all listed firms comply with the same auditing and inspection rules, especially as re…
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Gold: 0.88% Silver: 0.43% Oil - US Crude: -0.31% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/s7unTde0G5
  • The #FTSE 100 surged to its highest level since early June on Wednesday after the equity index pierced a longstanding technical barrier around 6,200. Get your #FTSE market update from @PeterHanksFX here:https://t.co/uFaYFaPGz2 https://t.co/mNnlGDksJn
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.30%, while traders in US 500 are at opposite extremes with 76.93%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/kZcqWecOdG
  • The $EURUSD's climb continues at an exceptional pace. It is on course for the biggest three-week rally since May 2015 (the bottoming after the 2014 collapse) https://t.co/AbDLQ07D95
  • ECB's Lagarde says we are at low point of this crisis today - BBG
  • US Treasury Yields: 2-Year: 0.194% 3-Year: 0.250% 5-Year: 0.400% 7-Year: 0.633% 10-Year: 1.393% 30-Year: 1.626% $TNX
S&P 500: Looking to Confluence of Support on Further Retracement

S&P 500: Looking to Confluence of Support on Further Retracement

2016-12-16 12:42:00
Paul Robinson, Strategist
Share:

What’s inside:

  • Fed action/projections only upset markets in small way
  • Consolidation/pullback phase underway
  • Confluence of support lines offers spot for 'would-be' longs

For educational material, see our Trading Guides.

On Wednesday, the Fed raised rates by 25 bps as expected and mildly upset the market with its projection for three hikes next year via the ‘dot plot’. It certainly wasn’t upsetting for US dollar bulls, but did drop the S&P 500 from record highs notched out the prior day.

The surge higher in recent trade has been momentous, indeed, one which has been difficult to chase with new longs, but certainly not at a point of extension where it's worth trying to short, either. However, with a little pullback here, ‘would-be’ longs may soon get their chance to take a crack at longs at a confluence of support.

The February trend-line lies not far below along with the trend-line off the 11/4 low. Confluence takes shape around the 2245ish area. A hold there and turn higher should lead to a push to a new high towards 2300. However, should we see a break of those trend-lines a deeper decline may unfold back towards the top-side trend-line running as far back as February 2015. The t-line is in close approximation to the 11/30 peak at 2214. A move below there would be cause for concern and lead to a retest of the August record highs.

For now, though, global markets are well-bid and with the year-end nearing it looks unlikely we will see a sizable sell-off even if markets are extended. If it were another time of year a higher probability of a down-move would be assigned. We will continue to stay the course as long as the market does…

S&P 500: Daily

S&P 500: Looking to Confluence of Support on Further Retracement

Created with Tradingview

Check out our webinar calendar for a schedule of upcoming live events.

---Written by Paul Robinson, Market Analyst

You can receive Paul’s analysis directly via email by signing 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

News & Analysis at your fingertips.