Ian Coleman running through his anaylsis this morning on SPX500 (US500). Join us on Telegram for more trade ideas – https://t.me/signalcentre
US500 – Intraday – We look to Sell at 3020 (stop at 3030)
Dips continue to attract buyers. Price action continues to trade around the all-time highs. Price action has formed a bearish ending wedge formation. The trend of higher highs is located at 3022. The 261.8% Fibonacci extension is located at 3021 from 2958 to 2982. The rally is close to an exhaustion count on the weekly chart. Bullish divergence can be seen on the 4 hour chart (the chart makes a lower low while the oscillator makes a higher low), often a signal of exhausted bearish momentum, or at least a correction higher. Preferred trade is to sell into rallies. Trend line support is located at 2970. The formation has a measured move target of 2910.
Our profit targets will be 2910 and 2900
Resistance: 3022 / 3040 / 3050
Support: 2970 / 2910 / 2900
Euro-zone equities opened lower and failed to make headway during the New York session despite gains on Wall Street.
The Eurostoxx 50 index declined 0.2% with significant divergence amongst markets with the German DAX index declining 0.5% while the Italian FTSE MIB index gained 0.7%.
There were mixed influences on major UK stocks with gains in gold and oil sectors offset by a limited GBP/USD recovery and the FTSE 100 index lost 0.1%
US equities responded favourably to Powell’s testimony with expectations of interest rate cuts boosting sentiment. Despite some unease over earnings trends, the S&P 500 index gained 0.45% to near record highs.
Asian markets made headway on Thursday, although gains were tentative given underlying concerns over trade developments.
Japan’s Nikkei 225 index gained 0.45% with a weaker US dollar offsetting support from higher oil prices while the Australian ASX index gained 0.4% as mining stocks made significant headway.
China’s Shanghai index secured a 0.2% gain in late trading with a strong 0.7% advance for Hong Kong’s Hang Seng index as political pressures eased slightly.