S&P500 rally towards key resistance, what could happen next?
“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
SPX500 extended gains while currently testing near the resistance of 4173.
SPX500 Daily Technical Analysis
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.
ORDER: BUY STOP
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.
ZFX (Zeal Capital Market) is an FCA & FSA licensed online Forex & CFD broker providing more than 100 products for Forex, commodities, stock indices, and share CFDs. Open a trading account with min. USD 50 deposit and download our MT4 trading platform now!