S&P 500 Technical Analysis | Forexlive

Yesterday,
the S&P 500 rallied strongly erasing almost all the losses from the hot US
CPI release. It looks like the market can look through some
higher-than-expected inflation prints as long as growth remains stable, and the
Fed doesn’t embark on another tightening process. Therefore, it might be better
to focus more on growth related data rather than inflation figures unless
there’s a serious reacceleration in inflation that forces the Fed to reverse
course and hike rates again.

S&P 500 Technical
Analysis – Daily Timeframe

On the daily chart, we can see that the S&P 500
bounced on the key trendline where we
had also the confluence with the
red 21 moving average as the
buyers stepped in to target a new high. The sellers, on the other hand, will
need the price to reverse and break below the trendline to switch the bias from
bullish to bearish and start targeting new lows.

S&P 500 Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can see that we
had also the 61.8% Fibonacci
retracement level adding extra confluence around the
trendline. The buyers have been waiting for such a pullback to increase the
bullish bets into new highs and unless the data today doesn’t come out
incredibly bad, we can expect a new all-time high pretty soon.

S&P 500 Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can see that late
buyers can wait for a pullback into the 4957 level to have a better risk to
reward setup but if the data today comes out good, then we will likely see a
continuation of yesterday’s rally without a pullback as the buyers will look to
pile in at the market’s open.

Upcoming Events

Today we will see the latest US Jobless Claims
figures and the US Retail Sales data, while tomorrow we conclude the week with
the US PPI and the University of Michigan Consumer Sentiment survey.