The S&P 500 Index is edging lower according to futures, potentially correction a fraction of its tremendous gains in the second quarter. How is the stock index positioned on the technical charts?
The Technical Confluences Indicator is showing that some support awaits the S&P 500 at around 3,040, which is the convergence of two Fibonacci lines – the 23.6% one-week, the 23.6% one-day,
Stronger support awaits at 3,032, which is the meeting point fo the Fibonacci 38.2% one-day and the Simple Moving Average 5-4h.
Looking up, some resistance awaits at 3,059, which is the confluence of the Bollinger Band 15min-Upper and the Fibonacci 38.2% one-week.
Stronger resistance is at 3,071, which is where the previous monthly high and the SMA 5 one-day hit the price.
Here is how it looks on the tool:
The Confluence Detector finds exciting opportunities using Technical Confluences. The TC 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.
This tool assigns a certain amount of “weight” to each indicator, and this “weight” can influence adjacents price levels. These weightings mean that one price level without any indicator or moving average but under the influence of two “strongly weighted” levels accumulate more resistance than their neighbors. In these cases, the tool signals resistance in apparently empty areas.
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.