- The S&P 500 is trading 1.37% higher on Wednesday in another good session for equities.
- The technical signs are good at the moment but there is a key technical resistance nearby.
S&P 500 4-hour chart
The US bourses have been on a bullish run on Wednesday as risk sentiment remains positive. The price has just tested the black downward sloping trendline but we will need to wait to see if it manages to close above the level.
Looking at the red rectangle, the area represents a key resistance zone coupled with the 76.4% Fibonacci resistance. Elliott Wave analysts often look for a rejection of the 76.4% retracement when looking for a wave 1-2 completion. Unfortunately, we won't know if it is a wave 1-2 until the wave low just above 3000 breaks to the downside. If the level does break then the market could take a run at the highs. At the moment the high on the chart stands at 3233.25.
Looking at the indicators, the Relative Strength Index does have some more room to move to the upside. It is holding in a bullish area above the 50 zone and potentially could hit the overbought area soon. The MACD histogram is firmly in the green. One of the signal lines has crossed above the mid-level while the other is marginally behind.
The overall trend is still very much an uptrend. For a technical trend change to occur a break of 2936.50 is needed. This could complete a lower high lower low pattern and the market could head to lower levels. At the moment this is far from being the case, the trend is up and it will be important to see if the price can break the trendline by the close. If it does it could be the confirmation the bulls have been craving for.
Additional levels
All information and content on this website, from this website or from FX daily ltd. should be viewed as educational only. Although the author, FX daily ltd. and its contributors believe the information and contents to be accurate, we neither guarantee their accuracy nor assume any liability for errors. The concepts and methods introduced should be used to stimulate intelligent trading decisions. Any mention of profits should be considered hypothetical and may not reflect slippage, liquidity and fees in live trading. Unless otherwise stated, all illustrations are made with the benefit of hindsight. There is risk of loss as well as profit in trading. It should not be presumed that the methods presented on this website or from material obtained from this website in any manner will be profitable or that they will not result in losses. Past performance is not a guarantee of future results. It is the responsibility of each trader to determine their own financial suitability. FX daily ltd. cannot be held responsible for any direct or indirect loss incurred by applying any of the information obtained here. Futures, forex, equities and options trading contains substantial risk, is not for every trader, and only risk capital should be used. Any form of trading, including forex, options, hedging and spreads, contains risk. Past performance is not indicative of future FX daily ltd. are not Registered Financial Investment Advisors, securities brokers-dealers or brokers of the U.S. Securities and Exchange Commission or with any state securities regulatory authority OR UK FCA. We recommend consulting with a registered investment advisor, broker-dealer, and/or financial advisor. If you choose to invest, with or without seeking advice, then any consequences resulting from your investments are your sole responsibility FX daily ltd. does not assume responsibility for any profits or losses in any stocks, options, futures or trading strategy mentioned on the website, newsletter, online trading room or trading classes. All information should be taken as educational purposes only.
Recommended content
Editors’ Picks
EUR/USD stays in positive territory above 1.0850 after US data
EUR/USD clings to modest daily gains above 1.0850 in the second half of the day on Friday. The improving risk mood makes it difficult for the US Dollar to hold its ground after PCE inflation data, helping the pair edge higher ahead of the weekend.
GBP/USD stabilizes above 1.2850 as risk mood improves
GBP/USD maintains recovery momentum and fluctuates above 1.2850 in the American session on Friday. The positive shift seen in risk mood doesn't allow the US Dollar to preserve its strength and supports the pair.
Gold rebounds above $2,380 as US yields stretch lower
Following a quiet European session, Gold gathers bullish momentum and trades decisively higher on the day above $2,380. The benchmark 10-year US Treasury bond yield loses more than 1% on the day after US PCE inflation data, fuelling XAU/USD's upside.
Avalanche price sets for a rally following retest of key support level
Avalanche (AVAX) price bounced off the $26.34 support level to trade at $27.95 as of Friday. Growing on-chain development activity indicates a potential bullish move in the coming days.
The election, Trump's Dollar policy, and the future of the Yen
After an assassination attempt on former President Donald Trump and drop out of President Biden, Kamala Harris has been endorsed as the Democratic candidate to compete against Trump in the upcoming November US presidential election.