S&P 500 Technical Analysis

Yesterday, the S&P 500 finished the day
positive as the lack of bearish catalysts continues to support the market. In
fact, the path of least resistance remains to the upside as growth and
employment stay resilient, and the Fed continues to signal three rate cuts this
year even if inflation reaccelerates a bit.

S&P 500 Technical
Analysis – Daily Timeframe

On the daily chart, we can see that the S&P 500
has
been diverging with
the MACD for a
long time. This is generally a sign of weakening momentum often followed by
pullbacks or reversals. In this case, it led to pullbacks into the red 21 moving average and
the trendline where
the dip-buyers kept on stepping in to position for the rallies into new highs.
The sellers might want to wait for the price to break below the trendline
before even considering going short in this market.

S&P 500 Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can see that from
a risk management perspective, the buyers will have a much better setup around
the trendline where we can also find the confluence with
the 38.2% Fibonacci
retracement level and the red 21 moving average. The
sellers, on the other hand, will want to see the price breaking lower to
invalidate the bullish setup and position for a bigger correction to the
downside.

S&P 500 Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can see that the
price bounced on the 38.2% Fibonacci retracement level but didn’t fall all the
way back to the trendline. We can also notice that we have an important level
at 5230 where the price reacted to several times. If we get a retest of this
level, we can expect the buyers to step in to position for even higher prices.

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This article was written by FL Contributors at www.forexlive.com.