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.

0

Notifications

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

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
Oil - US Crude
Bullish
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
More View more
Real Time News
  • Trading bias allows traders to make informative decisions when dealing in the market. This relates to both novice and experienced traders alike. Start learning how you may be able to make more informed decisions here: https://t.co/rz7fqhRoMG https://t.co/B0tErdvYzV
  • Commodities Update: As of 10:00, these are your best and worst performers based on the London trading schedule: Silver: 0.16% Gold: -0.02% Oil - US Crude: -0.46% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/BDNsL6Lqdb
  • Forex Update: As of 10:00, these are your best and worst performers based on the London trading schedule: 🇨🇭CHF: 0.03% 🇨🇦CAD: 0.01% 🇬🇧GBP: 0.01% 🇯🇵JPY: -0.08% 🇳🇿NZD: -0.17% 🇦🇺AUD: -0.25% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/jXFfAv8rVd
  • Indices Update: As of 10:00, these are your best and worst performers based on the London trading schedule: Wall Street: -0.38% France 40: -0.47% US 500: -0.74% FTSE 100: -0.95% Germany 30: -1.02% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/qssc8NV6Ey
  • Binance announcement - cutting back futures and derivatives offerings in Germany, Italy and the Netherlands - weighing on crypto prices. #btc #eth #ltc @DailyFXTeam https://t.co/auRNvG7CD4
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/FCKcgAxFkR
  • China National Health Commission says will resolutely cope with Covid-19 outbreak in Nanjing City and related infections
  • 💶 Inflation Rate MoM Flash (JUL) Actual: -0.1% Previous: 0.3% https://www.dailyfx.com/economic-calendar#2021-07-30
  • 🇮🇹 Inflation Rate YoY Prel (JUL) Actual: 1.8% Expected: 1.7% Previous: 1.3% https://www.dailyfx.com/economic-calendar#2021-07-30
  • 💶 Inflation Rate YoY Flash (JUL) Actual: 2.2% Expected: 2% Previous: 1.9% https://www.dailyfx.com/economic-calendar#2021-07-30
S&P 500 – Consolidating or Short-term Top Leading to Test of Support?

S&P 500 – Consolidating or Short-term Top Leading to Test of Support?

Paul Robinson, Strategist

What’s inside:

  • S&P 500 trend remains broadly higher
  • Short-term pattern could lend to decline to support
  • Scenarios and price levels outlined

Find out in our Q3 Forecast what’s driving the S&P 500 this quarter.

On Thursday, we discussed a couple of ways to handle the current trading environment with the S&P 500 effectively ‘suspended in air’. With volatility low and a summer trading environment upon us as August gets started we have to be especially selective in how we maneuver in the indices.

Looking at the daily chart the broader trend higher is unquestionably intact and suggests the S&P 500 will trade to higher grounds in the absence of a catalyst which will upset the market. And if this is the case the sequence of choppy trading followed by surges to new highs will likely be the course to follow. One of the scenarios highlighted last week was for a minor pullback to the June high at 2454 or the lower parallel extending higher from the May low. This stance remains in place. It may take a little time to reach support, but if it does and holds then we’ll be looking for potential dip-buying opportunities.

S&P 500: Daily

S&P 500 – Consolidating or Short-term Top Leading to Test of Support?

Pulling in closer to the hourly time-frame, there is a short-term pattern which may lead to a decline to those broader support levels. A small ‘head-and-shoulders’ top is developing. It’ll need to trigger soon if it is to come to fruition. Bearish patterns in strong markets are at risk of not triggering or failing altogether. Another potential issue to contend with on seeing any real follow-through is the fact that the neckline aligns roughly with the first level of support at 2354 on the daily. So, shorts will need to be mindful of this. The juice on a short-trade will most likely come on a break of the neckline and 2354. This will leave about 10-15 handles until we reach the lower parallel on the daily. It’s not a large amount of profit potential, but could give the very short-term trader something to work with from the short-side.

For those who have no interest in making bearish bets, waiting for a pullback to support or further consolidation is a prudent approach. The short-term H&S pattern may be lead to seeing a test of support and potentially better entries for would-be longs.

See the Webinar Calendar for a full line-up of upcoming live events with DailyFX analysts.

Hourly

S&P 500 – Consolidating or Short-term Top Leading to Test of Support?

---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