S&P 500 Tech Outlook: Trading Levels in Focus
- S&P 500 choppy, but tradeable in the short-term
- Bias is generally higher
- Top and bottom-side levels on the radar
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From Monday’s piece regarding the S&P 500, “The market has been very choppy since the middle of December; this makes for tough trading and calls on us to be disciplined in picking entries isolated to pullbacks.” With the trading environment in mind, we’ll look at short-term levels to consider for quick-hitter trades.
The general bias for the market is higher at the moment, even if it isn’t rip-roaring its way to new heights. With that said, it appears for now until we see a strong break lower that dips will be short-lived and support levels will hold. The first short-term level we have on our radar is yesterday’s low at 2285. Not far below there is a trend-line extending higher off the Dec 31 low. Depending on the timing this could align with a gap-fill from 2/3 at 2281.
Looking to the top-side, the 2/7 high at 2299 and then just a tad higher at 2301 the market will find resistance. It may not take much to push through those levels given the generally bullish tone, but we’ll want to see how the market responds upon trading there, should it do so. Pre-market futures are indicating a higher open at this time by about 5 handles, so we could see those levels challenged very early on today.
Generally, we expect more of the same with regards to a choppy trading environment and prefer to take the approach of taking trades off levels with conservative price targets and stops in place.
S&P 500: Hourly
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---Written by Paul Robinson, Market Analyst
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.