S&P 500 Technical Analysis | Forexlive

Yesterday,
the S&P 500 finished the day positive despite some pressure for most of the
day. There was no catalyst for the selling other than some general risk off
sentiment due to impending Nvidia earnings. The company crushed
expectations and the stock surged in after-hours trading, so we
can expect the market to open higher today. Moreover, we got the FOMC
Meeting Minutes yesterday but as it’s always the case, they were
stale and didn’t contain anything that the market didn’t already know. Today we will see the latest US Jobless Claims
figures and the US PMIs which will likely be big market movers.

S&P 500 Technical
Analysis – Daily Timeframe

On the daily chart, we can see that the S&P 500
bounced on the red 21 moving average and
despite the recent break of the trendline, we
should see the market open above it and the buyers to pile in aggressively with
probably another round of FOMO after the Nvidia earnings.

S&P 500 Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can see the
strong buying into the close yesterday, and although the setup for the sellers
looked good with a retest of the trendline and the red 21 moving average adding
confluence, the
market should open above the levels today. The sellers will need to wait for
another break below the trendline before considering bearish positions.

S&P 500 Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can see more
closely the bearish setup around the 5000 level which is now invalidated.
Unless the data is extremely ugly, we can expect the buyers to pile in
aggressively today at the open and extend the rally into new highs.