S&P 500 E-mini Futures Technical Analysis

The S&P 500
has been rising steadily since last week due to a more dovish than expected
FOMC decision where the Fed decided to signal a bigger QT taper beginning in
June and the Fed Chair Powell pushing back repeatedly against rate hike
expectations. Moreover, the data on Friday
showed that the Fed might indeed just keep rates higher for longer as job and
wage growth soften. All of the above is supportive for the market in the short
term as the hawkish positioning unwinds a bit.

S&P 500
E-mini Futures Technical Analysis – Daily Timeframe

On the daily
chart, we can see that the bigger correction into the 4834 level might have
been invalidated for the time being. The S&P 500 bounced around the 5000
level as we got two positive catalysts from the FOMC decision and the softer US
NFP data. The path of least resistance remains to the upside with new all-time
highs in sight.

S&P 500
E-mini Futures Technical Analysis – 1 hour Timeframe

On the 1 hour
chart, we can see that the price broke out to the upside following the softer
US NFP report and after a retest of the 5120 zone, continued higher with the
buyers piling in with more conviction. If we get a pullback, the 5167 level
might be the first support for a dip-buying opportunity.

Upcoming
Catalysts

This week is pretty bare on the data front with just the US
Jobless Claims on Thursday and the University of Michigan Consumer Sentiment
survey on Friday being the only notable releases. It’s unlikely that they will
change the market’s expectations that much, so the price action might remain
tentative heading into the US CPI next week, although the bias should remain
bullish.

This article was written by Giuseppe Dellamotta at www.forexlive.com.