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
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Bearish
Gold
Bearish
GBP/USD
Mixed
USD/JPY
Bearish
More View more
Real Time News
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/5uSWKoLkd6 https://t.co/ZcSPE0xkvX
  • Join @PaulRobinsonFX 's #webinar at 5:30 AM ET/9:30 AM GMT for insight on London #FX and #CFD trading. Register here: https://t.co/AoM3UvLtcF https://t.co/zKfTmM2Lvn
  • Germany's IFO forecasts - Upgrades 2020 GDP outlook to -5.2% from -6.7% - Downgrades 2021 GDP outlook to 5.1% from 6.4%
  • BoE's Bailey says while negative rates is in the toolbox, this does not imply the BoE would use negative rates $GBP
  • BoE's Bailey says negative rates have been a mixed bag in other countries $GBP
  • BoE's Bailey says the BoE have looked very hard at scope to lower rates further, including negative interest rates $GBP
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.45%, while traders in NZD/USD are at opposite extremes with 69.03%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/xwIu29Mfxl
  • 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/qy92JdlDpt
  • BoE's Bailey says labour demand is weak with unemployment higher than its reported number $GBP
  • For those who like their DMAs $GBP https://t.co/N24AeArRdI
S&P 500 Analysis for Short-term Traders: Possible Pattern Set-up

S&P 500 Analysis for Short-term Traders: Possible Pattern Set-up

2017-11-03 08:32:00
Paul Robinson, Strategist
Share:

What’s inside:

  • S&P 500 continues to hold steady on June slope, keeping the market pointed higher
  • Bearish pattern beginning to come into view on the hourly chart
  • Formation may not lead to a sharp decline, but at least provide traders with a little volatility

Check out the DailyFX Quarterly Forecasts to find out where our analysts see global stock markets ending the year.

Last week, we noted the bearish engulfing bar which took shape in the S&P 500 on Monday and its potentially bearish implications. Which proved to be correct…for an entire day-and-a-half. Broadly speaking, it has paid those who just follow along with the trend, because pullbacks with any meaning have become non-existent. The upward grind has generally been unkind to the short-term trader in terms of providing volatility, and that very well may continue on through the end of the year.

The once top-side June trend-line has become a solid source of support since crossing it a month-ago. Last week it was broken by a fairly wide margin on an intra-day basis, but the market still managed to close above. Yesterday, we saw another successful hold on an intra-day dip. We will continue use this line as a steadfast line of support for as long as it holds.

S&P 500: Daily

S&P 500 Analysis for Short-term Traders: Possible Pattern Set-up

For as long as it holds…

There is one bearish possibility beginning to show its face. It’s one which we talked about yesterday in a webinar on classic technical patterns. It will take a little more time, like maybe Monday or Tuesday, before its fully matured, but a rising wedge is coming into view. Its development is coming after an extended move and the narrowing upward price swings may be close to corralling the bulls over the edge. A break would of course immediately bring into play the June slope, but with these patterns often leading to swift reversals it may be the first time in over a month it doesn’t hold. The target would be support around 2544/40, and that may be about all we get…it’s a bull market, after all.

Want to hear Paul’s analysis live? See the Webinar Calendar for details and a schedule of all upcoming live events.

Hourly

S&P 500 Analysis for Short-term Traders: Possible Pattern Set-up

Bottom line: It’s paid to be a bull, but there is potential for the short-term trader to take a bite out of the market from the short-side if the current sequence matures into a rising wedge and breaks the lower trend-line. This would at least bring about a spat of volatility, and at this point, any volatility is welcomed. It may also lead to the next good ‘dip-trip’ opportunity for longs.

---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