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
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
GBP/USD
Bullish
USD/JPY
Bearish
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
Bearish
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
Bitcoin
Bearish
More View more
Real Time News
  • What are safe-haven assets and how can you trade them? Find out: https://t.co/B9RRWB7sZ0 https://t.co/GIFZkLphCa
  • Commodities Update: As of 08:00, these are your best and worst performers based on the London trading schedule: Gold: 0.28% Silver: 0.20% Oil - US Crude: -2.15% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/K2vtJ3HSmt
  • Forex Update: As of 08:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.21% 🇪🇺EUR: 0.02% 🇨🇭CHF: -0.01% 🇨🇦CAD: -0.20% 🇦🇺AUD: -0.55% 🇳🇿NZD: -0.62% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/vYw4TJGluQ
  • Indices Update: As of 08:00, these are your best and worst performers based on the London trading schedule: US 500: -1.00% Wall Street: -1.00% Germany 30: -1.32% France 40: -1.61% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/Hrkj947xY7
  • RT @C_Barraud: 🇨🇳 #China (2) | A blockage of 16 cities (~50 million people) coupled with the extension of the Lunar New Year holiday and pr…
  • Last week, I discussed in a webinar following New Zealand #CPI data how the uptick is unlikely to give lasting support to #NZDUSD. It has since dropped to a 1-month low. Here's the webinar recording - https://t.co/FB370zM7YU
  • Hey, traders 👋 do you want live AMAS with our analysts, market updates and tools to improve your trading strategy? Join us now on Instagram! 👉 https://t.co/pHGzVMqsC4 https://t.co/Gqd6QYtwau
  • Excellent quote, and very true. https://t.co/ZZxfYkhtUM
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.55%, while traders in Germany 30 are at opposite extremes with 78.28%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/mF9IjVDANC
  • Forex Update: As of 05:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.19% 🇨🇭CHF: 0.05% 🇪🇺EUR: 0.03% 🇬🇧GBP: -0.10% 🇦🇺AUD: -0.31% 🇳🇿NZD: -0.49% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/B5s24o9414
S&P 500 Technical Outlook: ‘Blow-off’ Rally Continues

S&P 500 Technical Outlook: ‘Blow-off’ Rally Continues

2017-03-02 12:31:00
Paul Robinson, Currency Strategist
Share:

What’s inside:

  • S&P 500 rips to new heights post-Trump address
  • There is minor resistance in the vicinity, but momentum is strong; ‘blow-off’ may have more to go
  • Risk/reward unfavorable for both sides of the tape at the moment

Looking for trading ideas? See our Trading Guides.

The other day we looked at a short-term price sequence which suggested if it gained momentum we could be in for a short-term top. Not so fast. Later, on Tuesday evening (EST time) in the U.S., President Trump addressed Congress and it won over the market; resulting in the S&P futures gapping higher on Wednesday morning and then rallying sharply for all but the last five minutes of the day.

The SPX closed the session at the bottom-side of a trend-line extending higher off the November low and back below the psychological 2400 level. Given the momentum of the market these are only considered minor points of resistance.

From a big picture standpoint, chasing the market higher here doesn’t present the best risk/reward. But as we’ve been saying during this ‘blow-off’ rally, outside of very short-term maneuvers (day-trades), shorting has no appeal. No change on this stance.

Where is the market headed? The expectation on this end is that in the not-too-distant future we will see a meaningful top and a resulting period of sideways price action at the least, and likely a material retracement given the extreme nature of the rip. But these ‘blow-off’ top type moves can go much further than we think, and until we see price action suggesting the broader move higher is finished or consolidating we will stand aside and wait for better signaling from the market.

S&P 500: Daily

S&P 500 Technical Outlook: ‘Blow-off’ Rally Continues

Created with TradingView

See the Webinar Calendar for a schedule of upcoming live events with Paul or any of the other 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.

DISCLOSURES

News & Analysis at your fingertips.