With the risk-on sentiment back in vogue amid optimism over more stimulus and coronavirus cure, the S&P 500 futures broke the Asian consolidation phase to the upside and rallied 0.80% to regain the 3,350 level.
The bulls gear up for a test of the all-time-highs reached in early February at 3,397.50. Although uncertainty over the US fiscal stimulus and economic recovery could keep the further upside elusive. Let’s take a look at how its positioned technically.
S&P 500 Futures: Key resistances and supports
The tool shows that the S&P 500 futures flirt with 3,363 levels, which is the convergence of the previous day low and previous high on four-hour.
The next relevant resistance is aligned 3,372, the intersection of the Pivot Point one-week R1, Bollinger Band one-day Upper and SMA10 one-hour.
Acceptance above the latter will call for a test of the Fibonacci 38.2% one-day at 3,380 en route the previous day high near 3,387. The buyers will then aim for the record highs.
Alternatively, 3,355 is the immediate cushion for the bulls, where the previous week high and pivot point one-day S2 meet.
Further south, powerful support at 3,348 will test the bears’ commitment. The level is the confluence of the Fib 161.8% one-day, SMA5 one-day and Bollinger Band four-hour Middle.
A sharp sell-off could be triggered below a break of the latter, which could put 3,327 support at risk, the pivot point one-month R1.
S&P 500 Futures: Chart
About the Confluence Detector
The TCI (Technical Confluences Indicator) is a tool to locate and point out those price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc. Knowing where these congestion points are located is very useful for the trader, and can be used as a basis for different strategies.
Learn more about Technical Confluence
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD alternates gains with losses near 1.0720 post-US PCE
The bullish tone in the Greenback motivates EUR/USD to maintain its daily range in the low 1.070s in the wake of firmer-than-estimated US inflation data measured by the PCE.
GBP/USD clings to gains just above 1.2500 on US PCE
GBP/USD keeps its uptrend unchanged and navigates the area beyond 1.2500 the figure amidst slight gains in the US Dollar following the release of US inflation tracked by the PCE.
Gold keeps its daily gains near $2,350 following US inflation
Gold prices maintain their constructive bias around $2,350 after US inflation data gauged by the PCE surpassed consensus in March and US yields trade with slight losses following recent peaks.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.