On the daily chart below, we can see that the resistance at 4175 has once again managed to stop the buyers. Recent hot economic data weighs on the index as the market reprices a higher terminal rate.
The minor uptrend line was breached last Friday as the Fed’s Bullard (hawk, non-voting) said he was open to a 50 basis point hike and a higher terminal rate. This tilts the price action towards a bearish bias. The moving averages are also about to turn south, signaling a possible trend change.
In the 4 hour chart below we can see that the price is now bouncing back from a previous swing support and it is now likely to retrace back to the previous swing resistance which has a Fibonacci retracement level of 38 .2% as confluence.
The moving averages are pointing south, although in ranged price action they can give false signals, so it would be best to wait for a clear break of the 4060 support before having any conviction of a downtrend.
In the one-hour chart below, we can see recent catalysts that have weighed on the S&P500. Since the hit NFP report 2 weeks ago, the market hasn’t really done much. It was pure turmoil hinting at uncertainty on both sides. This is the toughest environment for traders.
The 4099 resistance is likely to be the decider for the next move. Sellers will likely leverage this strong resistance to target a break of 4060 support. If buyers manage to break 4099 resistance on the upside, then we could see an extension of resistance at 4175 again.
cnbctv18-forexlive-benzinga
Don’t miss interesting posts on Famousbio
