S&P 500 Technical Analysis | Forexlive

Last Friday, the S&P 500 ended the day negative
following the US NFP report.
There was something for everyone. In fact, for the buyers, the payrolls number
beat expectations while the average hourly earnings missed. For the sellers,
the unemployment rate jumped to 3.9% and the household survey showed a third
consecutive month of job losses. In this case, the technicals should help in
determining the next move for the market as we approach some key levels.

S&P 500 Technical
Analysis – Daily Timeframe

On the daily chart, we can see that the S&P 500
is approaching a key trendline where we
can also find the red 21 moving average for confluence. This is
where we can expect the buyers to step in with a defined risk below the
trendline to position for a rally into a new all-time high. The sellers, on the
other hand, will want to see the price breaking lower to increase the bearish
bets into the 4946 level.

S&P 500 Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can see the key
support zone
around the 5048 level marked with the green box where we can find also the 50% Fibonacci
retracement level for further confluence. If the
price breaks below this support, the bullish setup would be invalidated, and
the sellers will gain more conviction to target new lows.

S&P 500 Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can see that the
latest leg higher diverged with
the MACD. This
is generally a sign of weakening momentum often followed by pullbacks or
reversals. In this case, the target for the pullback should be right around the
base of the divergent formation at the support zone.

Upcoming Events

Tomorrow we have the main event of the week, that is
the US CPI report. On Thursday we get the US PPI, the US Retail Sales and the
US Jobless Claims figures. On Friday, we conclude the week with the University
of Michigan Consumer Sentiment survey.