S&P 500 Price Analysis: Technical lines drawn as America continues burning – Confluence Detector

Yohay Elam FXStreet

President Donald Trump threatens to bring in the army and New York is under curfew amid growing protests. Stock markets are unsure of what do, as the unfolding events may trigger further fiscal stimulus. How is the S&P 500 positioned on the charts?

The Technical Confluences Indicator is showing that some support awaits at 3,038, which is a cluster of lines including the Fibonacci 38.2% one-day, the SMA 5-15m, the Bollinger Band 1h-Middle, and the SMA 10-4h.

Stronger support awaits at 3,023, which is the convergence of the Pivot Point one-day Support 1, the previous daily low, and the previous 4h-low.

Looking up, minor resistance awaits at 3,042, which is the confluence of the SMA 10-15m, and the Fibonacci 23.6% one-week.

The upside target for the S&P 500 Index is 3,070, where the Bollinger Band 1h-Upper and the previous monthly high converge.

Here is how it looks on the tool:

Confluence Detector

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.

Learn more about Technical Confluence

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

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