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
Bearish
Oil - US Crude
Mixed
Wall Street
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
Mixed
GBP/USD
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
USD/JPY
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
  • Use this technical analysis pattern recognition skills test to sharpen your knowledge: https://t.co/Qgz89PTxnu https://t.co/TwrOBFgIwj
  • Gold prices were crushed this week as yields continued to climb. But with a big spot of support coming in, can buyers bring a bounce ahead of NFP? Get your market update from @JStanleyFX here: https://t.co/E1TTXVJGUm https://t.co/pD4TeAY3ZP
  • Get your snapshot update of the of market open and closing times for each major trading hub around the globe here: https://t.co/BgZLFljIhZ https://t.co/PiLYJDVvtY
  • What suits your style of trading stocks or commodities? Find out what are the differences in these two markets here: https://t.co/BnA07cMV0s https://t.co/453MLny2lu
  • The haven-linked US Dollar may be in a position to benefit in the short-run as economic recovery bets support longer-dated Treasury yields, making them more competitive with stocks. Get your market update from @ddubrovskyFX here: https://t.co/BickxlcuZi https://t.co/OdARp4Z1mh
  • The Dow Jones and Nasdaq 100 look to be on diverging technical paths as volatility spikes. Meanwhile, the S&P 500 teeters on support as it splits the difference between its sister indices. Get your market update from @PeterHanksFX here: https://t.co/0gULgIN2kw https://t.co/dzuxyjkXmx
  • What's the difference between leading and lagging indicators? Find out from here: https://t.co/vGx8HCagF5 https://t.co/yTYG7ote3R
  • The reflation trade is helping to push the oil-linked Canadian Dollar higher as the post-Covid economic outlook clears. The Loonie is reliant on the global economy’s recovery. Get your market update from @FxWestwater here: https://t.co/CYUiH0PCca https://t.co/my6clW7pxY
  • Struggling to define key levels? Floor-Trader Pivots assist traders in identifying areas in a chart where price is likely to approach and can be used to set appropriate targets, while effectively managing risk. Learn how to use this indicator here: https://t.co/Ye4m1FMKUW https://t.co/q8Ds7wYrKA
  • The non-farm payroll (NFP) figure is a key economic indicator for the United States economy. It is also referred to as the monthly market mover. Find out why it has been given this nickname here: https://t.co/yOUVEEqhc5 https://t.co/qtAmyhFU9A
S&P 500 Trading Outlook: Hard to Buy, Even Harder to Short

S&P 500 Trading Outlook: Hard to Buy, Even Harder to Short

Paul Robinson, Strategist

What’s inside:

  • S&P 500 continues to rise, buying not appealing but neither is shorting
  • Top-side channel line might provide support again on a pullback
  • Volatility likely to rise in meaningful way, just not today and not likely tomorrow either

Start building your knowledge today with DailyFX Trading Forecasts & Guides

In the first couple of days to start the year, we noted that the S&P 500 was extended but that momentum wasn’t worth fighting. At the time, the market was at the upper end of the channel starting back at the beginning of December, a channel which it has been exceeded in recent sessions, and even as late as Wednesday tested as support.

The view hasn’t changed, the market is extended and while it may be tempting for some to short it because it’s ‘too high to buy’ or simply overbought, ‘up here’ can become ‘down there’ quickly in as strong of a market as the current one. Initiating fresh longs doesn’t hold much appeal, but shorting holds even less. There will be a time for shorts, just not yet.

What is a trader to do? Another dip back to the upper parallel may offer traders a level of support to lean on, but the time for a meaningful decline may also be nearing. Keep an eye on price action on any decline which unfolds. Not all declines are created equal. Those with momentum want to be sidestepped until momentum subsides and reverses, while dips (corrections) which are shallow and lacking any meaningful power are viewed as more favorable for entry.

As we’ve discussed on a couple of occasions, most recently at the very end of last year, volatility looks poised to rise at some juncture, and likely in a meaningful and sustainable way. You can check out detailed commentary on the subject in the Top Trading Opportunities in 2018 under “Resurgence of Volatility, S&P 500 Runs into Trouble”. But until we see cracks in the lining, we’ll have to continue trading in the market environment we are currently being dealt.

Check out these 4 methods for Building Confidence in Trading

S&P 500: Daily

S&P 500 daily price chart

---Written by Paul Robinson, Market Analyst

To receive Paul’s analysis directly via email, please SIGN UP HERE

You can follow Paul on Twitter at @PaulRobinsonFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES