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.



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

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Oil - US Crude
Wall Street
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
  • US Equity Update (Wednesday Close): $DJI +1.20% $SPX +0.82% $NDX +0.84% $RUT +0.20% $VIX -0.42%
  • Indices Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Wall Street: -0.15% US 500: -0.19% FTSE 100: -0.22% Germany 30: -0.37% France 40: -0.46% View the performance of all markets via
  • Following last night's debate, the Commission on Presidential Debates (CPD) announced today that they: "will be carefully considering the changes that it will adopt and will announce those measures shortly". #PresidentialDebate2020
  • USD strength has shown in September but that’s been a change-of-pace to the bigger-picture trend of weakness. Which will take over in Q4? Get your $USD market update from @JStanleyFX here:
  • Pelosi says stimulus talks with Mnuchin will continue - BBG
  • Update on #Cryptocurrencies #BITCOIN -0.55% #BITCOINCASH -0.35% #ETHEREUM -0.68% #RIPPLE -0.46% #LITECOIN +1.08%
  • Commodities Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: -0.28% Gold: -0.31% Silver: -3.01% View the performance of all markets via
  • US Dollar: Ready to Rumble with High-Impact Data - EURUSD, AUDUSD
  • Senator McConnell signals that a deal is still far off on stimulus $SPX $DJI $DXY
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.18%, while traders in Wall Street are at opposite extremes with 69.58%. See the summary chart below and full details and charts on DailyFX:
S&P 500 & Dow Jones Show Short-term Blow-off Top in the Works

S&P 500 & Dow Jones Show Short-term Blow-off Top in the Works

2017-12-01 11:00:00
Paul Robinson, Strategist

What’s inside:

  • S&P 500 roars to new record highs, does so at a vertical pace this week
  • CBOE Volatility Index (VIX) spiked yesterday as the rise accelerated, indicates instability
  • Weakness looks likely in the days ahead as unwinding of ‘euphoric’ buying unfolds

Start boosting your knowledge base today with DailyFX Trading Guides.

Last week, we were looking for a ‘dip-trip’ opportunity which could present ‘would-be’ longs with an opportunity to join the trend. As it turns out, the market had in mind a different idea. No dip, just rip. Which brings us to where we are now, the market standing straight up in the air. Yesterday, the price action got a little wild (not as wild as Bitcoin, but wild for this low-volatility environment), and options traders didn’t fail to take notice.

The CBOE Volatility Index (VIX), also known as a ‘fear barometer’ due to it typically rising in a down tape as market participants buy puts for protection, rose as much as 12% intra-day with the S&P 500 up well over 1%. Not an everyday occurrence to see implied volatility rise so vigorously on a big up day. As the market retreated in the afternoon so did the VIX. This kind of unusual behavior smacks of price instability.

The S&P overshot the top-side parallel running over tops since August, but closed below another longer-term one extending higher since April 2016. Price instability coupled with resistance points to significantly heightened risk for a material pullback to develop in the short-term. On the downside, a decline back towards 2600 would bring into play some decent support levels which, depending on timing, could be in confluence with one another.

Seasonality remains favorable in the weeks ahead, so perhaps we don’t see anything too aggressive, and if support levels below are achieved and hold we may still get that ‘dip-trip’ opportunity into year-end. In any case, short-term volatility looks set to rise a bit, which is almost always a good thing for traders.

S&P 500: Daily

S&P 500 & Dow Jones Show Short-term Blow-off Top in the Works

Longer-term we are at a very interesting juncture as well. Recently we noted that the area around 2625/50 (slightly exceeded so far) could rustle up some interesting price action (which we are starting to see) due to an even more significant top-side slope than the aforementioned lines also in the current vicinity. For more on the chart below, check out this commentary.

Check out this guide for tips on Building Confidence in Trading.

S&P 500: Weekly

S&P 500 & Dow Jones Show Short-term Blow-off Top in the Works

The Dow Jones presents less clarity, with it lacking the overhead slopes that the S&P 500 has as hurdles, but if the S&P undergoes a material pullback it won’t go untouched. The past few days have been the most insane for this index (Nasdaq 100 is actually down over the past week), and looks poised for a pullback. The equivalent April 2016 top-side trend-line was exceed during the past couple of sessions and that line along with the trend-line rising up from September will be viewed as first up in terms of support.

Dow: Daily

S&P 500 & Dow Jones Show Short-term Blow-off Top in the Works

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

---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.