Forex Analysis:SPX500 Hits Resistance At 2900/30 Levels

Bottom line:  SPX500 long term bearish structure remains intact until 3400 holds good. Bulls have managed to push a bit higher towards 2970 levels but it is just a matter of time before bears are back in control.

Fundamental Outlook:

SPX500 along with Dow Jones and NASDAQ inched higher by over 2.5% yesterday and managed to close at 2939. SPX500 futures continue to trade higher at 2970 while we are writing this article and it remains to be seen how the indice behaves when US markets open.

Despite the negative US GDP figures (-4.8%), markets continued to rally amidst COVID-19 drug trials, earnings and the Fed leaving rates unchanged. There are also talks of further stimulus package by the Fed if required.

USDJPY continued to slide lower yesterday and closed around 106.58 levels. The US Dollar lost its ground due to several factors: Contracting GDP figures, COVID-19 pandemic, Over 26 million jobs lost in the past few weeks and continued fears of further slide in GBP for the next quarter. The USDJPY is set to drop further towards 101.50 levels.

Technical Analysis:

SPX500 continued its counter trend rally yesterday and pushed through 2960 levels. This move did not come as a surprise and it was much awaited before bears could take control back. SPX500 is now expected to produce a bearish reaction any moment and resume lower towards 2200 mark.

Structurally, SPX500 had managed to produce an impulse drop between 3400 and 2200 levels respectively. It clearly confirmed that the drop is still incomplete and would resume after a counter trend rally is complete. Now, the expected corrective rally since 2200 lows, seems to be complete around 2960 levels. This is also fibonacci 0.618 retracement of the earlier drop and hence high probability remains for a bearish reversal.

Most traders might be initiating fresh short positions between 2950 and 2970, with protective stop above 3400 and projected targets towards 2200 and further.

Prepared by

Harsh Japee, Technical Analyst.

 

SPX500 Chart

 


MyFxtops 邁投 (www.myfxtops.com) -Reliable Forex Copy Trade community, follow the master for free to trade!

Disclaimer: This article is reproduced from the Internet. If there is any infringement, please contact us to delete it immediately. In addition: This article only represents the personal opinion of the author and has nothing to do with Mato Finance The originality and the text and content stated in this article have not been confirmed by this site. The authenticity, completeness and timeliness of this article and all or part of the content and text are not guaranteed or promised. Please refer to it for reference only Verify the content yourself.

Copyright belongs to the author.
For commercial reprints, please contact the author for authorization. For non-commercial reprints, please indicate the source.

 

MyFxtops迈投(www.myfxtops.com)-靠谱的外汇跟单社区,免费跟随高手做交易!

 

免责声明:本文系转载自网络,如有侵犯,请联系我们立即删除,另:本文仅代表作者个人观点,与迈投财经无关。其原创性以及文中陈述文字和内容未经本站证实,对本文以及其中全部或者部分内容、文字的真实性、完整性、及时性本站不作任何保证或承诺,请读者仅作参考,并请自行核实相关内容。

著作权归作者所有。
商业转载请联系作者获得授权,非商业转载请注明出处。

風險提示

MyFxtops邁投所列信息僅供參考,不構成投資建議,也不代表任何形式的推薦或者誘導行為。MyFxtops邁投非外匯經紀商,不接觸妳的任何資金。 MYFXTOPS不保證客戶盈利,不承擔任何責任。從事外彙和差價合約等金融產品的槓桿交易具有高風險,損失有可能超過本金,請量力而行,入市前需充分了解潛在的風險。過去的交易成績並不代表以後的交易成績。依據各地區法律法規,MyFxtops邁投不向中國大陸、美國、加拿大、朝鮮居民提供服務。

邁投公眾號

聯繫我們

客服QQ:981617007
Email: service@myfxtop.com

MyFxtops 邁投