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Market Outlook
S&P500 rally towards key resistance, what could happen next? - Zeal Capital Market

S&P500 rally towards key resistance, what could happen next?

02-08-2022 10:15

“S&P500 cleared major hurdle while current resistance poses threat ahead.”

US stocks advanced further upwards as recent data from the US suggests possible slowdown in Federal Reserve’s policy tightening. Last month, University of Michigan’s Consumer Inflation Expectation slipped from 5.3% to 5.2%. The data reflects possible depreciation in inflation which may encourage Fed to put a halt on current policy tightening.

Quick recap on SPX500

SPX500 recouped its losses as it rebounds from the support level near 3663.

SPX500 Weekly Technical Analysis

S&P500 rally towards key resistance, what could happen next? - Zeal Capital Market

SPX500 extended gains while currently testing near the resistance of 4173.

SPX500 Daily Technical Analysis

S&P500 rally towards key resistance, what could happen next? - Zeal Capital Market

In terms of daily chart, 4173 coincides with the 200-MA line, which may pose as a major threat to bulls. However, a close above this level would provide confirmation for further upside ahead.

Trading Idea

S&P500 rally towards key resistance, what could happen next? - Zeal Capital Market

ORDER: BUY STOP

ENTRY: 4210

STOP LOSS: 4120

Target 1: 4300

Target 2: 4400

ZFX Analyst’s Comment

For the time being, while SPX500 is skewed towards the upside, we will still require a confirmatory close above 4173 prior to entering the market.

Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.

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