S&P 500: Pullback to consolidative zone leaves room for a leg higher – Charles Schwab

FXStreet Team FXStreet

The S&P 500 saw a pullback at the end of the last week as Randy Frederick from Charles Schwab had warned. Nonetheless, the retracement has brought the S&P 500 Index to a consolidation area which should allow for a wave higher.

Key quotes

“I had been fairly comfortable with the S&P 500 rebound off the 3/23 lows, especially during the 6-week long consolidation period from early-April through late-May. While I had hoped that consolidation would continue for longer, when it broke out again in late-May, I began to get concerned that it could be setting the stage for a 5%-10% pullback. Unfortunately, that concern became a reality this week; that’s the bad news.”

“The good news is that the pullback was enough to bring the S&P 500 back down to the consolidation zone again, which leaves room for the next wave higher. Hopefully, it will go a little slower this time.”

“For now, technical traders should look for downside support at the 200-day SMA (3,013), the 100-day SMA (2,945) and the 50-day SMA (2,903).”

Author

FXStreet Team

FXStreet

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.