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.



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
Please try again
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
  • Indices Update: As of 07:00, these are your best and worst performers based on the London trading schedule: FTSE 100: 0.60% France 40: 0.55% US 500: 0.52% Germany 30: 0.44% Wall Street: 0.44% View the performance of all markets via
  • Heads Up:🇪🇸 Markit Manufacturing PMI (JUL) due at 07:15 GMT (15min) Expected: 59.5 Previous: 60.4
  • Take a closer look visually at the most influential global importers and exporters here:
  • Ethereum/Bitcoin spread looks to have broken trendline resistance we spoke about the weekend. #ethereum #bitcoin #eth #btc @dailyfx
  • 🇨🇭 Retail Sales YoY (JUN) Actual: 0.1% Previous: 2.8%
  • 🇨🇭 Inflation Rate YoY (JUL) Actual: 0.7% Expected: 0.7% Previous: 0.6%
  • Heads Up:🇨🇭 Retail Sales YoY (JUN) due at 06:30 GMT (15min) Previous: 2.8%
  • Heads Up:🇨🇭 Inflation Rate YoY (JUL) due at 06:30 GMT (15min) Expected: 0.7% Previous: 0.6%
  • 🇩🇪 Retail Sales YoY (JUN) Actual: 6.2% Previous: -1.8%
  • Crude Oil Prices Drop After Weaker China PMI, Viral Resurgence
S&P 500 Technical Analysis: US Stocks Ready for the Next Big Drop?

S&P 500 Technical Analysis: US Stocks Ready for the Next Big Drop?

Ilya Spivak, Head Strategist, APAC


  • One-month trend line break hints S&P 500 downtrend may be resuming
  • Key support near 2600, foothold above 3000 needed to neutralize sellers
  • Trader sentiment studies warn bearish reversal signal may be brewing

The S&P 500 may be preparing to resume the downtrend launched in late February after the Fed’s spirited firefighting efforts amid the coronavirus outbreak triggered a broad-based recovery in risk appetite, pulling the index up from March lows. Prices have now broken rising trendline support defining the bounds of the upswing, suggesting a correction has run its course and the bearish trend has been re-engaged.

From here, a daily close below initial support at 2726.50 seems likely to open the door for a challenge of the 2603-26 price inflection zone. Extending down beyond that puts the 38.2% Fibonacci expansion in the spotlight. Initial resistance begins in the 2854-90 area. Neutralizing near-term selling pressure in earnest probably demands a daily close above the 3000 figure however.

S&P 500 price chart - daily

S&P 500 daily price chart created with TradingView


IG Client Sentiment (IGCS) studies offer a warning to would-be sellers however. The latest data shows that 77.42% of traders are net-short, with the long-to-short ratio at 3.43 to 1. IGCS is typically used as a contrarian indicator, so the net-short skew in traders’ exposure suggests that the S&P 500 is biased higher.

Having said that, traders are less net-short than yesterday and compared with last week. This warns that – despite the bullish tilt implied in overall positioning at surface level - the dominant S&P 500 price trend may be preparing to turn in favor of a downside scenario.

S&P 500 stock index price, trader sentiment

See the full IGCS sentiment report here.


--- Written by Ilya Spivak, Currency Strategist for

To contact Ilya, use the comments section below or @IlyaSpivak on Twitter

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