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.

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
More View more
S&P 500 Technical Outlook: SPX500 Stock Plunge- More To Come

S&P 500 Technical Outlook: SPX500 Stock Plunge- More To Come

Michael Boutros, Strategist

S&P 500, Nasdaq Technical Price Outlook: Near-term Trade Levels

  • S&P 500 technical trade level update – Daily & Intraday Charts
  • SPX500 plunges towards support at the yearly lows- rallies could be short-lived
  • SPX Resistance 4309, 43921, 4450(key) - Support 4117, 4416/35 (critical)
Advertisement

The S&P 500 plummeted more than 10% off the March highs with a major technical break in the index now threatening a run on the yearly lows. These are the targets and invalidation levels that matter on the SPX500 technical price charts this week. Review my latest Strategy Webinar for an in-depth breakdown of this SPX500 setup and more.

S&P 500 Price Chart – SPX500 Daily

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

Chart Prepared by Michael Boutros, Technical Strategist; SPX500 on Tradingview

Technical Outlook: In my last S&P 500 technical outlook we noted that the SPX500, “remains at risk for further losses near-term and we’re on the lookout for a possible low in the days ahead closer to trend support.” An outside-day reversal off slope resistance on April 21st was followed by a break below key Fibonaccisupport at 4309– The flood gates have opened.

S&P 500 Price Chart – SPX500 240min

S&P 500 Price Chart - SPX500 240min - SPX Trade Outlook - Stock Technical Forecast

Chart Prepared by Michael Boutros, Technical Strategist; SPX500 on Tradingview

Notes: A closer look at SPX500 price action shows the index trading within the confines of a descending pitchfork formation extending off the March high with price rebounding today just points ahead of the median-line. Initial resistance now 4309/16 and the 4/21 outside reversal-day close at 4391- both levels of interest for possible topside exhaustion IF reached. Broader bearish invalidation now lowered to the 61.8% retracement / February opening-range low at 4446/50. Initial support now at the May 2021 low-day close / March low at 4117/37 exposes subsequent objective at the May low (4035) and the 100% extension of the decline off the yearly high at 3924- look for a larger reaction there IF reached.

Bottom line: The technical damage has been done and S&P 500 remains at risk for further losses. From a trading standpoint, look for an exhaustion high ahead of 4391 on recoveries with a break lower likely to fuel another accelerated drop toward fresh yearly lows. Review my latest S&P 500 Weekly Technical Forecast for a closer look at the longer-term SPX 500 technical trade levels.

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 – US500 Price Chart

S&P 500 Trader Sentiment - US500 Price Chart - SPX500 Retail Positioning - SPX Technical Outlook
  • A summary of IG Client Sentiment shows traders are net-long the S&P 500- the ratio stands at +1.64 (62.13% of traders are long) – typically a bearishreading
  • Long positions are2.54% higher than yesterday and 15.27% higher from last week
  • Short positions are 14.31% lower than yesterday and 13.66% lower from last week
  • We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests US 500 prices may continue to fall. Traders are further net-long than yesterday and last week, and the combination of current positioning and recent changes gives us a stronger SPX500-bearish contrarian trading bias from a sentiment standpoint.

US Economic Calendar

US Economic Calendar - Key Data Releases - Weekly Event Risk

Economic Calendar - latest economic developments and upcoming event risk.

Active Technical Setups

-Written by Michael Boutros, Technical 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