S&P 500 has moved 0.61% higher in today’s session as tech shares rally. The beginning of the week has proven to be quite eventful ahead of another week of high-profile earnings and more rumors surrounding the US - China trade talks.
In total, 97 members of the S&P 500 index are due to report their earning this week, thus caution is warranted. Moreover, the entire stock market continues to benefit from a dovish Fed, following their Wednesday’s statement.
Looking at the 4H chart, the price has pushed above today’s resistance in the context of the 78.6% Fibonacci retracement. Beforehand, the S&P had spent the second part of January trapped within a symmetrical triangle.
The moment the bulls pushed the price higher it became apparent that another bull leg had started. The price action briefly stopped at 2,706 (the 78.6% Fibo), but it continued higher today. The next stops are 2,742 - the 100 daily moving average; 2,756 - the 88.6% Fibo retracement; and the trend line resistance (the light blue line), which now comes around 2,790.
The price has also managed to break out of the mini channel, (the orange trend lines), as it moves towards the 100 DMA at 2,742.
Unless the earnings data massively disappoints, it is to be expected that S&P will move towards the first resistance target.
On the downside, the 100 4H moving average and the former triangle’s resistance will provide support for the bulls as they attempt to drive the price further higher.
In total, 97 members of the S&P 500 index are due to report their earning this week, thus caution is warranted. Moreover, the entire stock market continues to benefit from a dovish Fed, following their Wednesday’s statement.
Looking at the 4H chart, the price has pushed above today’s resistance in the context of the 78.6% Fibonacci retracement. Beforehand, the S&P had spent the second part of January trapped within a symmetrical triangle.
The moment the bulls pushed the price higher it became apparent that another bull leg had started. The price action briefly stopped at 2,706 (the 78.6% Fibo), but it continued higher today. The next stops are 2,742 - the 100 daily moving average; 2,756 - the 88.6% Fibo retracement; and the trend line resistance (the light blue line), which now comes around 2,790.
The price has also managed to break out of the mini channel, (the orange trend lines), as it moves towards the 100 DMA at 2,742.
Unless the earnings data massively disappoints, it is to be expected that S&P will move towards the first resistance target.
On the downside, the 100 4H moving average and the former triangle’s resistance will provide support for the bulls as they attempt to drive the price further higher.