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.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
Oil - US Crude
Wall Street
More View more
Real Time News
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here:
  • RBA Minutes: Rate rise conditions unlikely met until 2024 at earliest, changing 3-year yield target from 0.1% not warranted. Will continue bond buys if assists progress towards goals -BBG $AUDUSD #RBA
  • RT @BrendanFaganFx: Japanese Yen Analysis: USD/JPY Points Higher as GDP Data Misses Expectations $USDJPY Link:
  • Heads Up:🇦🇺 RBA Meeting Minutes due at 01:30 GMT (15min)
  • Japan's Economic Minister Yasutoshi says Q1 GDP drop due largely to dip in consumption - BBG
  • What are some monetary policies that could affect Gold this quarter? Get your Gold free forecast here: #DailyFXGuides
  • 🇯🇵 GDP Growth Rate QoQ Prel (Q1) Actual: -1.3% Expected: -1.2% Previous: 2.8%
  • 🇯🇵 GDP Growth Annualized Prel (Q1) Actual: -5.1% Expected: -4.6% Previous: 11.6%
  • Heads Up:🇯🇵 GDP Growth Rate QoQ Prel (Q1) due at 23:50 GMT (15min) Expected: -1.2% Previous: 2.8%
  • Heads Up:🇯🇵 GDP Growth Annualized Prel (Q1) due at 23:50 GMT (15min) Expected: -4.6% Previous: 11.7%
S&P 500: Testing Bottom-side of Familiar Trend-line

S&P 500: Testing Bottom-side of Familiar Trend-line

Paul Robinson, Strategist

What’s inside:

  • S&P 500 trades to record levels
  • Minor resistance at the underside of a familiar trend-line
  • Preferred strategy remains buying dips versus chasing momentum

Looking for trading ideas? See our Trading Guides.

On Thursday, we looked at short-term trading levels in the S&P 500 and kept with the theme of higher prices in line with the trend. The market tacked on gains into record territory on Thursday and Friday. The up-move put the S&P once again up against the underside of the Feb ’16 trend-line, a line which acted as resistance in late January, and could again act as resistance in the near-term. However, given resistance is in the form of a t-line in the same direction as the market, it’s only viewed as a minor in significance. A shallow decline developing from current levels would help validate this notion. An aggressive turn lower would raise red flags that the t-line may require more respect as resistance.

Support on a turn lower comes in at the old highs of 2301, then the trend-line off a swing low to end last year; this aligns up approximately with the 2/8 low at 2285. Below there the top of the Dec-Jan congestion period around 2277 would come into play. With these levels in mind, there are several levels of support for the market on any decline which should develop.

Chasing the market higher here is not without its risk, and we take preference to buying dips instead of buying in hopes of continued momentum. Given the current environment, this means we’ll need to be patient in finding a better risk/reward situation for new longs on small countertrend pullbacks.

S&P 500: Daily

S&P 500: Testing Bottom-side of Familiar Trend-line

Created with TradingView

See the Webinar Calendar for a schedule of upcoming live events with DailyFX analysts.

---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.