CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

Chart of the day SP 500 rebounded from key medium term support with positive elements

Article By: ,  Financial Analyst
May 4, 2018 7:35 AM

Short-term technical outlook on SP 500 Index (Fri, 04 May)





Key technical elements

  • Yesterday’s 1.6% tumble seen on the SP 500 Index (proxy for the S&P 500 futures) from its 03 May European session high of 2638 has printed a low of 2593 in the U.S. session. Interestingly, the low of 2593 is just 0.3% away from the key medium-term support of 2585 which is defined by the lower boundary of the “Symmetrical Triangle” range configuration in place since 06 Feb 2018 that confluences with a Fibonacci retracement/projection cluster (see 1st chart).
  • Yesterday’s price action of the Index has managed to reverse up sharply from the 2593 low and ended the day with a bullish “Dragonfly Doji” candlestick pattern right above the 2585 key medium-term support (see 1st chart).
  • Two key high beta/momentum play sectors (Semiconductors & FANG/Technology) had continued to lead the S&P 500 and displayed positive elements (see 3rd & 4th charts).
  • The key short-term support of the SP 500 Index rests at 2610 which is defined by the 61.8% Fibonacci retracement of yesterday’s 03 May upside reversal from 2593 low to 2637 high and the former minor swing low areas of 10 Apr/25 Apr that has been “recaptured” back (bear trap) (see 2nd chart).
  • The key short-term resistances stands at 2637 and 2660 (the minor range top of 02/03 May 2018 & close to the 50% retracement of the recent slide from 18 Apr high to yesterday’s low of 2593.

Key Levels (1 to 3 days)

Intermediate support: 2625

Pivot (key support): 2610

Resistances: 2637 & 2660

Next support: 2585 (key medium-term support)

Conclusion

Therefore, as long as the 2610 key short-term pivotal support holds and a clear break above 2637 (an hourly close above it) is likely to see a further potential recovery for the SP 500 Index to target the next resistance at 2660 in the first step.

However, failure to hold at 2610 negates the bullish tone for another round of choppy slide to retest the 2585 key medium-term support.

Charts are from City Index Advantage TraderPro & eSignal



StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024