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.

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
EUR/USD
Mixed
Oil - US Crude
Mixed
Wall Street
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
Gold
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
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • 7 out of 11 S&P 500 sectors ended higher, with 73.1% of the index’s constituents closing in the green on Monday. Cyclical energy (+7.09%) , financials (+1.88%) and industrials (1.64%) were among the best performers, whereas real estate (-0.34%), healthcare (-0.30%) were lagging. https://t.co/bDpvRqEX4u
  • #ASX200 looking poised to extend its recent run higher as RSI climbs back into overbought territory Key resistance levels falling at the 50% (6674) and 61.8% (6755) Fibonacci's $XJO $ASX https://t.co/E7VADxCJ1o https://t.co/T3ICLoE9du
  • Euro Price Action Setups: EUR/USD, EUR/JPY, EUR/GBP Levels to Watch - https://www.dailyfx.com/forex/technical/home/analysis/eur-usd/2020/11/24/Euro-Price-Action-Setups-EURUSD-EURJPY-EURGBP-Levels-to-Watch.html $EUR $EURUSD $EURJPY $EURGBP https://t.co/qxHSS90Rnd
  • BoJ Governor Kuroda: Japan's economy has picked up, still in severe state - BBG $JPY
  • NZ FinMin Robertson: Proposes RBNZ consider house prices in monetary policy Urges RBNZ to give earliest possible consideration Seeks advices on more measures to curb housing demand - BBG $NZD
  • NZ Government proposes adding house prices to RBNZ remit - BBG $NZD #RBNZ
  • Singapore saw institutional money inflow for three weeks in a row, with S$ 309 million pumping into local stocks last week - SGX data. This marks a sharp reversal of net intuitional outflow seen in the first three quarters of the year. STI gained over 17% so far this month. https://t.co/os8nibKTGU
  • The Swiss Franc may continue higher against the US Dollar as technical pressure favors USD/CHF bears..Get your $USDCHF market update from @FxWestwater here:https://t.co/yqJbbhAWiu https://t.co/KuFy0VmYYL
  • - GSA to begin Biden transition process - Janet Yellen picked as Treasury Secretary - Rotation trade prevails - Will Yen weaken? ...and more Check out the latest Asia Pacific AM Briefing here - https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2020/11/24/Japanese-Yen-May-Fall-on-GSA-Joe-Biden-Transition-GBPUSD-Eyes-Resistance.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/s5rheoe2qD
  • “Donald Trump has accepted that a formal transition can begin for US President-elect Joe Biden to take office.” -BBC News
S&P 500 Bulls Undeterred by Hawkish Fed; Eyes on Slope Resistance

S&P 500 Bulls Undeterred by Hawkish Fed; Eyes on Slope Resistance

2017-09-21 10:00:00
Paul Robinson, Strategist
Share:

What’s inside:

  • Hawkish FOMC only causes only minor intra-day volatility, market snaps back
  • Recent breakout might continue, but history hasn’t been kind to chasers
  • A pair of top-side trend-lines could be problematic, bring in next way of weakness

Struggling to gain momentum in your trading? Check out this beginner’s guide – Building Confidence in Trading

Yesterday, the FOMC was clearly hawkish, and with that the US dollar ripped while U.S. equities tanked (at least momentarily). The dip in stocks wasn’t really much of a “tank” as the S&P 500 fell only about 10 handles, it just felt like it in this low-volatility environment (VIX closed sub-10). Weakness was short-lived and met with buying no more than about 25-30 minutes after the Fed announcement, erasing all FOMC-induced losses and closing near the highs of the session.

Since breaking out to new record highs earlier this month it’s been a grind. It hasn’t been worth fighting from the short-side, but not all that fruitful for the longs either. The trading might not get much easier or 'exciting' until we see another bout of weakness like we had during July and August. Weak markets equal higher volatility, thus more wiggle room for trading opportunities.

Looking at how the market has acted in recent years after notching new record highs we might not have to wait too long for another spat of volatility. The S&P has had a propensity for punishing those who chased the market into record high territory (three occasions since May). It’s a ‘buy-the-dip’ market. Initial breakout buys may have worked, but the better entries have been when others were exiting into declines.

Where might the market stall and turn back lower? Not far ahead we have a couple of top-side trend-lines. The one line running over peaks back to March comes in around the 2515-mark, while the second one extending back to June isn’t until the 2525/30-area (depending upon timing of arrival). At those points we’ll pay especially close attention to price action and if it suggests we are in for another decline - even if it is only to be corrective in nature. A sharp rejection lower will be our cue. Short-term traders (intra-day to a few days) should at least benefit from this, and for those looking to ‘buy-the-dip’ another decent opportunity might present itself at a later time.

Paul conducts webinars Tuesday-Friday. See the Webinar Calendar for details, and the full line-up of upcoming live events.

S&P 500: Daily

S&P 500 Bulls Undeterred by Hawkish Fed; Eyes on Slope Resistance

---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