as the market continued to reprice the aggressive rate cuts expectations
following Fed’s Waller
comments. Moreover, the economic data surprised once again to the upside with
the US Retail Sales beating
expectations across the board and Industrial Production edging
up. Overall, the soft-landing narrative is still intact but in the short term
the market is readjusting to tighter monetary conditions.
S&P 500 Technical
Analysis – Daily Timeframe
On the daily chart, we can see that the S&P 500
fell again below the red 21 moving average as the
bearish pressure remains strong. From a risk management perspective, the buyers
will have a better risk to reward setup around the support at 4700.
If the price breaks right through it, the sellers will increase the bearish
bets into the 4547 level.
S&P 500 Technical
Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that the
price was diverging with
the MACD right
at the all-time high. This is generally a sign of weakening momentum often
followed by pullbacks or reversals. The target for the pullback should be right
around the support zone at the 4700 level where we can also find the 38.2% Fibonacci
retracement level for confluence. This
is where the buyers should step in with a defined risk below the zone and
target a new all-time high.
S&P 500 Technical
Analysis – 1 hour Timeframe
On the 1 hour chart, we can see more
closely the current price action and we can see that we have a minor trendline
defining the current bearish momentum. The sellers should lean around the
trendline to position for a break below the support and target the 4547 level.
The buyers, on the other hand, will want to see the price breaking higher to
invalidate the bearish setup and increase the bullish bets into a new all-time
high.
Upcoming Events
Today, we will see the latest US Jobless Claims
figures, while tomorrow we conclude the week with the University of Michigan
Consumer Sentiment survey.
This article was written by FL Contributors at www.forexlive.com.
