S&P 500 Technical Analysis | Forexlive

Yesterday,
the S&P 500 continued to retreat from the highs as the market is waiting
for the key catalysts in the next few days and weeks. Nothing has changed in
the bigger picture as the Fed is still considering rate cuts conditional on the
disinflationary trend being intact. The data has been good but what will matter
the most is the next CPI report as that will tell us if the progress on
inflation has indeed stalled, or worse, reversed. Before that we will get many
important reports including the NFP, but as long as they remain benign the
market will likely keep on rising.

S&P 500 Technical
Analysis – Daily Timeframe

On the daily chart, we can see that the S&P 500
is now near the key trendline where we
can also find the blue 8 moving average for confluence. This is
where we can expect the buyers to step in with a defined risk below the
trendline to position for a rally into new highs. The sellers, on the other
hand, will want to see the price breaking lower to position for a drop into the
4920 level.

S&P 500 Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can see that we
have a strong support zone
around the 5050 level where we can find the confluence with the trendline, the 38.2%
Fibonacci
retracement level and the red 21 moving average. This
makes this level significant as a strong bounce will likely lead to new highs
while a break lower could trigger a quick selloff into the 4920 level.

S&P 500 Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can see more
closely the bullish setup around the 5050 level. What happens at this zone will
likely decide where the price will go in the next few days and weeks.

Upcoming Events

Today we will see the US PCE and the latest US
Jobless Claims figures, while tomorrow we conclude the week with the US ISM
Manufacturing PMI.