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
Bearish
USD/JPY
Bullish
Gold
Bullish
Oil - US Crude
Bullish
Bitcoin
Mixed
More View more
Real Time News
  • #DidYouKnow crude #oil is a natural resource that differs in composition depending on its location. Find out more crude oil facts from @WVenketas here: https://t.co/Ssp486xz2J #OOTT #CommoditieswithDailyFX https://t.co/zhkg96pyWo
  • RT @IHSMarkitPMI: 🇪🇺 Eurozone endured its worst quarter since 2013, according to flash PMI data, with December coming in at 50.6 (unchanged…
  • Tune in to @CVecchioFX 's #webinar at 7:30 AM ET/12:30 PM GMT to prepare for major event risk in the week ahead. Register here: https://t.co/QscMCDP1ud https://t.co/TZfPbJO4np
  • RT @lisaabramowicz1: Sweden is in the spotlight of global monetary policy as counterparts watch to see how easy it is for the experiment of…
  • RT @elerianm: Good morning. Wishing you all a good week Mixed real economy data to start the week: A beat in #China for retail sales (+8% Y…
  • The inside bar pattern occurs regularly within the financial markets. Incorporating the inside bar strategy within a trading system can enhance a trader’s market analysis technique. Find out how you can use it from @WVenketas here: https://t.co/E3EWOYTYNw https://t.co/zXiuoUw0ar
  • RT @elerianm: This @FT story--on "US #retailers hit by ‘worst year since 2008’ for discounting"--could be read as the third partial indicat…
  • RT @Schuldensuehner: Just to put things into perspective. S&P500’s all-time high driven mainly by global liquidity which hit an all-time hi…
  • RT @KyleR_IG: * CHINA NOV. RETAIL SALES RISE 8% Y/Y; EST. 7.6% * CHINA NOV. INDUSTRIAL OUTPUT RISES 6.2% y/y; EST. 5% * CHINA JAN-NOV FIXED…
  • Gold Price: XAU/USD Key Chart Signals to end Consolidation- GLD Forecast More details in the link below: https://www.dailyfx.com/forex/technical/home/analysis/xau-usd/2019/12/16/Gold-Price-XAUUSD-Key-Signals-to-end-Consolidation--GLD-Forecast-MK.html?CHID=9&QPID=917714 https://t.co/WUxDroWEBk
S&P 500 Starting the Week in the Hole After Meager Bounce

S&P 500 Starting the Week in the Hole After Meager Bounce

2017-03-27 10:20:00
Paul Robinson, Currency Strategist
Share:

What’s inside:

  • S&P 500 broke a confluence of important trend-lines last Tuesday
  • Market failed to show much response to the sell-off leading into a poor start to the week
  • Levels outlined

Looking for trading ideas? See our Trading Guides.

On Thursday, we expressed our view that without a quick turnaround after the sell-off on Tuesday (broke key trend-line confluence, created a lower low), the S&P 500 would be vulnerable to further losses, proving the 1%+ drop to be the real deal and not just a one-off event. The rest of the week after the drop demonstrated the type of weak price action which lends to a follow-through.

In overnight trade, we saw risk aversion hit Asia (Nikkei -1.44%) and currently Europe is under pressure (DAX -82 bps, FTSE -72 bps). The S&P 500 futures at the time of this writing are lower by 20 handles, or 86 bps – we’re in for a fairly strong down open barring a market-reversing headline.

At this time, the cash open will come below the Friday low at 2335. Looking lower, there isn’t any significant price support until the 1/26 swing-high of 2301. As long as we don’t see a ‘gap-n-trap’ buy situation which erases a significant portion of today’s losses and then some, we are looking to the area around 2300 as the near-term target.

How entrenched the current ‘risk-off’ environment becomes is yet unclear. So far, there aren’t any significant catalysts and the price action isn’t flashing uber-bearish signals. The feeling on this end is that this is likely just a correction, and at some point we will find a trade-able low which will lead to a challenge and likely new set of record highs.

But for now, we will keep our focus narrowed on the price action immediately in front of us.

The economic calendar for the week in the U.S. isn’t loaded with ‘high’ impact events – Tuesday brings Advance Goods Trade Balance, Consumer Confidence, and Yellen speaking; Wednesday we have final Q4 GDP. For details on time, expectations, and other scheduled data points please see the economic calendar.

S&P 500: Daily

S&P 500 Starting the Week in the Hole After Meager Bounce

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.

DISCLOSURES

News & Analysis at your fingertips.