Fundamental Overview
The S&P 500 continues to be supported given the lack of bearish drivers. We haven’t got any meaningful catalyst since the NFP report other than Trump’s tariff letters that were largely ignored by the market given that everyone expects them to be just the usual negotiating tactic.
Next week, we have the US CPI report and that could trigger some big moves in the market. To keep the trend going, we would likely need soft inflation figures as a hot report might trigger a deeper pullback given the positioning.
In the bigger picture though, given that the Fed's reaction function remains to either wait more or cut, the market should eventually get back to its upward trend.
S&P 500 Technical Analysis – Daily Timeframe
On the daily chart, we can see that the S&P 500 is consolidating around the all-time highs after a very strong rally. From a risk management perspective, the buyers will have a better risk to reward setup around the previous all-time high at 6,160-ish level to position for the continuation of the uptrend. The sellers, on the other hand, will want to see the price breaking lower to pile in for a drop into the 6,000 level next.
S&P 500 Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that we have an upward trendline defining the uptrend. If we were to get a pullback all the way into the trendline, we can expect the dip-buyers to lean on it to position for a rally into new all-time highs with a better risk to reward setup. The sellers, on the other hand, will look for a break lower to increase the bearish bets into the 5,800 level next.
S&P 500 Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see that we have a minor resistance around the 6,315 level. The sellers will likely continue to step in around the resistance with a defined risk above it to keep targeting a pullback into the 6,160 level. The buyers, on the other hand, will look for a break higher to increase the bullish bets into new all-time highs.
There’s also a minor upward trendline that can offer support for the dip-buyers, while the sellers will likely increase the bearish bets into new lows on a breakout. The red lines define the average daily range for today.
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This article was written by Giuseppe Dellamotta at www.forexlive.com. Read More Details
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