S&P 500 Technical Analysis | Forexlive

Last week, the S&P 500 didn’t move much given
the lack of economic events and the Thanksgiving holidays in the final part of
the week. The only two important reports were the US Jobless Claims and the US PMIs. The
former beat expectations across the board, while the latter came basically in
line with forecasts. This week we can expect more action with the holidays in
the rear-view mirror and some key economic releases on the agenda.

S&P 500 Technical
Analysis – Daily Timeframe

On the daily chart, we can see that the S&P 500
has almost reached the cycle high at 4607 following an incredible rally for the
entire month of November. We can expect the sellers to step in around these
levels targeting at least a deeper pullback. The buyers, on the other hand, remain
in control and it’s hard to see them folding without a catalyst.

S&P 500 Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can see that
the price is diverging with
the MACD, which is generally
a sign of weakening momentum often followed by pullbacks or reversals. This
might be a signal that we could see a pullback very soon, so it might be a good
idea for the buyers to take some off the table, especially at these key levels.

S&P 500 Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can see more
closely the divergence with the MACD, which has been going on since the
breakout of the key trendline around
the 4400 resistance. The buyers continue to lean on the lower bound of the
rising channel and the red 21 moving average to
target the cycle high. The sellers, on the other hand, will want to see the
price breaking lower to target a drop into the 4490 level and upon a further
break, the support around
the 4400 level where we can also find the 38.2% Fibonacci
retracement level of the entire rally.

Upcoming Events

Tomorrow, we have the US Consumer Confidence report. On
Thursday, we will see the latest US Jobless Claims figures and the US PCE
report. On Friday, we conclude the week with the US ISM Manufacturing PMI which
missed expectations by a big margin the last time.