S&P 500 Technical Analysis | Forexlive

Last
Friday, the S&P 500 pulled back a bit after the incredibly strong Nvidia
induced rally as we probably saw some profit taking. On the economic data side,
we got another slate of strong data last Thursday with the US
Jobless Claims and US PMIs beating
expectations. The Fed members continue to repeat that they want to see a couple
more of inflation reports before deciding on rate cuts, but they keep on
reiterating that cuts are coming this year. Overall, the path of least
resistance remains to the upside.

S&P 500 Technical
Analysis – Daily Timeframe

On the daily chart, we can see that the S&P 500
eventually bounced on the red 21 moving average and rallied
all the way up to make a new all-time high. There’s been lots of FOMO following
the Nvidia earnings report but chasing the price at these levels doesn’t look
like a good idea from a risk management perspective. In fact, the buyers would
have a much better risk to reward setup around the trendline.

S&P 500 Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can see that we
have now a good support zone
around the 5040 level where we can find the confluence with
the trendline, the 50% Fibonacci
retracement level and the red 21 moving average. This
is where we can expect the buyers to step in with a defined risk below the
trendline to position for another rally into new highs. The sellers, on the
other hand, will want to see the price breaking lower to invalidate the bullish
setup and position for a drop into the 4923 level.

S&P 500 Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can see more
closely the bullish setup around the 5040 level. What happens around this zone
will likely decide where the price will go in the next few weeks.

Upcoming Events

This week we have some important economic data on the
agenda. We begin tomorrow with the release of the US Consumer Confidence
report. On Thursday, we will see the US PCE and the latest US Jobless Claims
figures. Finally, on Friday, we conclude the week with the US ISM Manufacturing
PMI.