What’s inside:
- S&P 500 trades higher off support on FOMC-day
- Upward bias remains well intact
- Support and resistance levels outlined
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On Tuesday, the S&P 500 tested the confluence of trend-lines (Feb ’16 ‘cross-through’ & November) prior to the rip higher on FOMC-day. Our stance of ‘neutral to bullish’ has been predicated on support holding – so far it has. As long as this continues, then there will be no reason to change this bias. Nothing on this end suggests a short-bias is warranted.
The market may not rip to new highs in the same fashion it did in February, and in fact it may meander side-ways for a period of time (a process which could serve the market well given how far it has come in such a short period of time). As long as those trend-lines hold and we don’t see a sharp break through them develop, we look for short-term weakness to find buyers. A close below the confluence of trend-lines and then ultimately a lower low below 2353 would be required to tilt the picture downward.
Looking higher, the next true level of resistance doesn’t arrive until the previous record high of 2401.
Next week is light in terms of scheduled economic events, so the market will likely be driven on good old fashioned supply and demand – markets don’t need a big reason to move. For next week’s line-up see the economic calendar. On Tuesday, we’ll get into more depth on the path of not only U.S. indices but global indices as well in the weekly “Indices & Commodities Analysis for the Active Trader” webinar.
S&P 500: Daily
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See the Webinar Calendar for a schedule of upcoming live events with DailyFX analysts.
---Written by Paul Robinson, Market Analyst
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