News

S&P approaches critical level

14/03/2019

The S&P500 (#SP500) has been in a steady uptrend  since the beginning of the year when it opened at 2507. It’s now trading around 2811 and is right up against a multi-month resistance line that it broke through in October last year. We’ve been here a few times since then, and each time it has been knocked back pretty smartly. The market does have a slightly different feel to it this time, but it’s not a quality that invites confidence. What we normally see in these circumstances is the market taking a little break and trying to build up the courage to try again. We’d expect some Stop Loss orders above2825, some placed by people selling into the rally and some by traders hoping to ride a wave upwards with the momentum. Another failure at this point wouldn’t be a disaster, it would likely just provide a bit of breathing space for S&P bulls to get acclimatised to these levels before pushing on once more. We think a breach is likely eventually, but the danger is in assuming that once breached it will immediately have enough momentum to continue on to test the psychologically important 3000 level. We see progress as steady but do not see any signs that this is ready to run away just yet.

Share this news

Related posts

Forex News yen.jpg

Dollar Yen breaks lower

24/05/2019

Dollar Yen breaks lower

Read more
Forex News EU Flags 1.jpg

Decision time looms for Sterling

23/05/2019

Decision time looms for Sterling

Read more
Crypto bitcoin-two-1-e1501525477229.jpg

Bitcoin fails to convince

22/05/2019

Bitcoin fails to convince

Read more
Economic brexit.jpg

New Brexit Deal to be announced at 15:00

21/05/2019

New Brexit Deal to be announced at 15:00

Read more