S&P 500 Technical Analysis

On the daily chart below for the S&P 500, we can see that the price is again struggling hard at the key 4175 resistance. This level has been holding since September 2022 and as soon as the price gets there, it gets rejected. The sellers are likely to lean on this level again with a low risk in case the price breaks above and a huge reward in case the market turns, and we get another big bearish move. Last Friday the buyers haven’t even got any help from the economic data as retail sales missed across the board and the 1 year inflation expectations in the University of Michigan survey showed a big jump to the upside. S&P 500 Technical Analysis In the 4 hour chart below, we can see that the price has been diverging with the MACD rallying into the key resistance. This should be a sign of a weakening momentum and it generally leads to a pullback or reversal. The market may correct towards the trendline where the buyers are likely to lean onto. This is also where they should find support from the daily red long period moving average. In the 1 hour chart below, we can see how the spike above the key resistance was immediately followed by a big reversal. There are strong sellers here that keep defending this level. The first target for the sellers should be the support zone at 4100. The buyers may need a bullish fundamental catalyst to gather enough momentum to break above the resistance and start a rally towards the next resistance at 4300. Unfortunately, there’s no tier one economic data release until Thursday and Friday when we will get the US Jobless Claims and the US PMIs. This article was written by ForexLive at www.forexlive.com.
http://dlvr.it/SmcgQK