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
  • The US Dollar may rise with $USDIDR, $USDSGD, $USDPHP and USD$MYR as #coronavirus contagion fears hurt emerging markets. The #Fed and its repo operations will be closely watched #ASEAN - https://www.dailyfx.com/forex/fundamental/article/special_report/2020/01/27/USD-May-Rise-as-IDR-SGD-and-PHP-Fall-on-Coronavirus-Fears-and-Fed.html?CHID=9&QPID=917702 https://t.co/xMxoEifAIU
  • Commodities Update: As of 03:00, these are your best and worst performers based on the London trading schedule: Silver: 0.61% Gold: 0.52% Oil - US Crude: -2.46% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/EaP6sqAf6A
  • Forex Update: As of 03:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.25% 🇪🇺EUR: 0.05% 🇨🇭CHF: 0.04% 🇬🇧GBP: -0.11% 🇦🇺AUD: -0.29% 🇳🇿NZD: -0.53% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/J28cZ72K8a
  • LIVE NOW: Join @IlyaSpivak to discuss the outlook for the financial markets in the week ahead! Sign in here - https://www.dailyfx.com/webinars/889679267 #markets #trading #coronarovirus #FOMC #BOE
  • 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 79.14%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/QbAiygT28A
  • The GBP may fall as Brexit commences, but will the Bank of England cut rates? The US Dollar could rise if the Fed spooks markets with plans to unwind repo operations. Get your $GBPUSD market update from @ddubrovskyFX here: https://t.co/ezHK7Fgzy2 https://t.co/8jXmfKnKwq
  • LIVE IN 30 MIN: Join @IlyaSpivak to discuss the outlook for the financial markets in the week ahead! Sign in here - https://www.dailyfx.com/webinars/889679267 #markets #trading #coronarovirus #FOMC #BOE
  • Gold Prices and Yen Rise on Coronavirus Fears, Iraq Attack - https://www.dailyfx.com/forex/market_alert/2020/01/27/Gold-Prices-and-Yen-Rise-on-Coronavirus-Fears-Iraq-Attack.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Spivak&utm_campaign=twr #gold #jpy #coronavirus #iraq
  • Tune in to @IlyaSpivak 's #webinar at 10:00 PM ET/3:00 AM GMT for insight on the cross market weekly outlook. Register here: https://t.co/E213bTL0Xa https://t.co/tJ0CqzxCCE
  • RT @MWMozee: Also, US reports 5th case of #coronavirus US stock futures: $COMP falls 1.3% $DJIA down 0.8% $SPX drops 0.9% Hong Kong's…
S&P 500 Trading Outlook – Is the Decline Over?

S&P 500 Trading Outlook – Is the Decline Over?

2017-03-29 10:49:00
Paul Robinson, Currency Strategist
Share:

What’s inside:

  • S&P 500 rallies sharply after big Monday gap-down
  • Trading up against resistance zone
  • Hourly chart in focus

New to the markets, or simply looking for trader education? See our Trading Guides.

In Monday’s piece, we had this to say about the gap-down open: “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.” The gap-down buy was exactly what we saw, especially in the Nasdaq 100, which now sits in close proximity to a new record closing print.

The first two days of the week have brought a nice rebound, but was Monday the low, ending a correction? The overall trend is pointing upward, and dips, or corrections, should be relatively short-lived – at least in terms of price (time corrections can take a while). But it seems a bit premature to say the market is in the all-clear just yet.

Looking at the short-term, the S&P is squared up against a trough created earlier in the month, and needs to clear above if it is to touch off the trend-line running down from the record high created on 3/1.

S&P 500: Daily

S&P 500 Trading Outlook – Is the Decline Over?

Created with TradingView

Pulling in closer to the hourly chart, a pullback from current levels and higher low could create a bullish inverse head-and-shoulders set-up. But this is only a scenario, however; given this week’s gap-down and surge higher it would be reasonable to conclude that a higher low could develop and another thrust higher unfold thereafter. In this scenario, we would look for the top-side trend-line over 2370 as the next line of contention.

A drop below 2336 and it would become likely the Monday low will come under fire, and possibly worse. In summary, a pullback is the first expected move – how the market reacts on any decline which may unfold very soon will be the tell moving forward. As they say – ‘much can be learned in the retracement.’

S&P 500: Hourly

S&P 500 Trading Outlook – Is the Decline Over?

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.