S&P 500 Futures Price Analysis: Road to recovery intact while above 200-HMA

S&P 500 futures bounce-off 200-HMA support once again.
50-HMA challenges the recovery path, as the bulls retain control.
A brief pullback cannot be ruled out ahead of Wall Street open.

Dhwani Mehta FXStreet

S&P 500 futures, the risk barometer, have staged a solid comeback on Wednesday after a sharp sell-off witnessed late Tuesday.

Fresh hopes of US stimulus, after President Donald Trump backtracked somewhat on his decision to abandon the fiscal stimulus talks, lifted the overall market mood. Trump, in a couple of tweets this morning, asked the US lawmakers to agree on airline support and paycheck protection.

Over the last hour, the bulls seem to face exhaustion while the 50-hourly Simple Moving Average (HMA) at 3378 threatens the road to recovery from the critical 200-HMA level, currently at 3343.

The hourly Relative Strength Index (RSI) has turned south, at 52.77, still remains in the bullish territory, allowing for more recovery gains.

Meanwhile, the confluence of the 21 and 100-HMAs at 3366 caps the immediate downside.

Acceptance below the last would trigger a fresh drop back towards the 200-HMA.

S&P 500 Futures: Hourly chart

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

AUD/USD struggles to recover as hawkish Fed bets escalate

The Australian Dollar is under pressure against the US Dollar as traders have raised bets supporting interest rate hikes by the Federal Reserve this year, with the AUD/USD pair posting a fresh almost eight-week low at around 0.7025. Hawkish Fed bets have accelerated following the release of the surprisingly strong United States Nonfarm Payroll (NFP) data for May.

USD/JPY holds higher ground toward 160.50 despite 'Yentervention' fears

USD/JPY holds higher ground toward 160.50 in Monday's Asian trading, despite intervention fears. Japan’s revised GDP print, which confirmed that the economy lost momentum in the first quarter, weighs on the Japanese Yen. Meanwhile, Friday's upbeat US NFP report and fresh Israel-Iran attacks favor the US Dollar bulls, underpinning the currency pair.

Gold regains some shine, focus is on $4,350

Gold manages to reclaim the $4,300 mark per troy ounce and above on Monday. The yellow metal’s small uptick comes on the back of modest losses in the US Dollar, while traders keep following geopolitical events in the Middle East and the likelihood of a tighter-for-longer Fed.

Solana: ETF outflows and bearish sentiment reinforce downside risks

Solana (SOL) remains under pressure, trading below $66 on Monday after losing nearly 20% in the previous week. Institutional demand weakened with spot Exchange Traded Funds recording a net outflow of over $6.5 million last week, snapping a four-week streak of inflows.

$1.75 trillion: Is SpaceX the most popular IPO in history, or the most engineered?

On June 12, the largest initial public offering (IPO) in history is set to hit the tape, and almost nobody is asking whether the price is right, because almost everybody already wants in.

The US economy defies the rules: 100 days into the Oil shock and the recession signal is still missing

More than three months after the start of the Iran war and the resulting disruption to global energy markets, the US economy continues to display remarkable resilience. The conflict has triggered a sharp rise in Oil prices, reignited inflationary pressures and fueled widespread concerns about a potential economic slowdown.