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
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
Oil - US Crude
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
Wall Street
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
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
Bullish
USD/JPY
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
More View more
Real Time News
  • The #USD spent the bulk of Q2 in a range after a climactic Q1; and with a series of risk themes continuing to push, combined with an election in November, the door appears open for more vol in USD. Download our USD trading guide here: https://t.co/2Wo7EcwAht https://t.co/BA5dWk4wTt
  • $USD hegemony is at risk thanks to changes in the global economy and the long-term consequences of the US-China trade war. Get your market update from @CVecchioFX here:https://t.co/5GO9UrvO4y https://t.co/OTTEmg76W8
  • The immediate focus is on a break of this multi-week consolidation formation in the Australian Dollar with the broader rally vulnerable while below 7042. Get your AUD technical analysis here: https://t.co/iEYos1ioBc https://t.co/kuzB3Eqps0
  • #Gold prices have rallied to nine-year highs with the breakout testing multi-year uptrend resistance into the open of Q3. Can the rally be sustained? Download our latest Gold trading guide!: https://t.co/3KO2QWOnOt https://t.co/YIIGZdeIAJ
  • Why financial market traders must monitor both monetary and fiscal policy? Find out from @MartinSEssex here:https://t.co/Fkzk88Y5gm https://t.co/zerRXZC1Tq
  • Get your snapshot update of the of relative currency strength and exchange status from around the globe here: https://t.co/DmhBkd4B0k https://t.co/uj93z2SHpH
  • The Australian Dollar’s surge from the March lows may be coming to an end as bearish patterns begin to line up on multiple time-frames. Check out our #AUD trading guide to learn more here: https://t.co/pjfm07tqFd https://t.co/VypHLra1ER
  • The Evening Star candlestick is a three-candle pattern that signals a reversal in the market and is commonly used to trade forex. Learn more about the evening star candlestick pattern here: https://t.co/8OTE7m01IG https://t.co/Vumcng7UB3
  • After a miraculous recovery in Q2, equity markets will be left juggling the Fed’s policy and the threat of a second covid wave, all in an election year. Evidently, traders will have their hands full in Q3. Read our equity forecast here: https://t.co/JARqbOKIeM https://t.co/Ms6zEucjqg
  • Hey traders! I'm sure you've all heard about trend trading. Sharpen your knowledge here: https://t.co/jkliL5sxj7 https://t.co/uvlv1MCAHI
S&P 500 Technical Analysis: Stocks Tank Post-FOMC - Reversal Levels

S&P 500 Technical Analysis: Stocks Tank Post-FOMC - Reversal Levels

2020-06-11 17:02:00
Michael Boutros, Strategist
Share:

S&P 500 Index Technical Price Outlook: SPX500 Near-term Trade Levels

The S&P 500 Index plummeted more than 5% from the monthly high with price turning sharply lower from yearly open resistance. So is this just a near-term washout or is a larger correction underway? These are the updated targets and invalidation levels that matter on the SPX500 technical price charts. Review my latest Weekly Strategy Webinar for an in-depth breakdown of this S&P 500 trade setup and more.

Starts in:
Live now:
Jul 06
( 12:07 GMT )
Live Weekly Strategy Webinars on Mondays at 12:30GMT
Weekly Scalping Webinar
Register for webinar
Join now
Webinar has ended

S&P 500 Price Chart – SPX500 Daily

S&P 500 Price Chart - SPX500 Daily - US500 Trade Outlook - SPX Technical Forecast

Chart Prepared by Michael Boutros, Technical Strategist; S&P 500 Index on Tradingview

Technical Outlook: In my last S&P 500 Price Outlook we highlighted that the SPX advance was approaching near-term resistance into the close of the month around 3069 while noting that a, “breach higher from here exposes subsequent topside resistance objectives at 3137 and the yearly open at 3219.” Price briefly registered a high just above this threshold at 3233 early in the week before turning with the index taking another leg lower today in New York.

Monthly open support rests at 3057 backed by key support at the April high / 23.6% retracement of March rally at 2972/84- look for a larger reaction there IF reached. A topside breach / close above 3219 would be needed to mark resumption toward 3259 and the yearly high-day close at 3367.

S&P 500 Price Chart – SPX500 120min

S&P 500 Price Chart - SPX500 120min - US500 Trade Outlook - SPX Technical Forecast

Notes: A closer look at S&P 500 price action shows the index continuing to trade within the confines of an ascending pitchfork formation we’ve been tracking for weeks now. Price failed at the 75% parallel with a break below confluence uptrend support / the median-line accelerating the decline today. Look for a close below 3057 to keep the immediate short-bias viable with subsequent support objectives eyed at 3026 and the lower parallel (currently ~3005). Initial resistance now 3131 with near-term bearish invalidation lowered to 3179/81.

Equities Forecast
Equities Forecast
Recommended by Michael Boutros
Get Your Free Equities Forecast
Get My Guide

Bottom line: The S&P 500 reversed off yearly open resistance this week and the threat remains for a deeper correction near-term while below 3181. From a trading standpoint, a good zone to reduce short-exposure / lower protective stops – look to the close for guidance. Ultimately, a move lower may offer more favorable entries closer to broader uptrend support. Weakness beyond 2972 would suggest a larger correction is underway in the S&P 500.

For a complete breakdown of Michael’s trading strategy, review his Foundations of Technical Analysis series on Building a Trading Strategy

S&P 500 Trader Sentiment – SPX500 Price Chart

S&P 500 Trader Sentiment - SPX500 Price Chart - US500 Trade Outlook - SPX Technical Forecast
  • A summary of IG Client Sentiment shows traders are net-short the index - the ratio stands at -2.20 (31.29% of traders are long) – bullishreading
  • Long positions are8.76% higher than yesterday and 15.43% higher from last week
  • Short positions are 5.39% lower than yesterday and 18.75% lower from last week
  • We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests US 500 prices may continue to rise. Yet traders are less net-short than yesterday and compared with last week. The recent changes in sentiment warn that the current S&P 500 price trend may soon reverse lower despite the fact traders remain net-short
US 500 BULLISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily -9% 0% -3%
Weekly -26% 11% -3%
What does it mean for price action?
Get My Guide

---

Active Trade Setups

- Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michael on Twitter @MBForex

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

DISCLOSURES

News & Analysis at your fingertips.