S&P 500 probes key resistance
The S&P 500 has been quite resilient despite the Chinese stock market sell-off, raised geopolitical risks in the Middle East, uncertainty over the upcoming earnings results and not to mention US presidential election.
You would think that these risk events would weigh on risk appetite somewhat but so far this hasn't been the case.
Still, be on the look out for a possible reversal sign as the index tests this key zone starting around 5755ish to around 5665ish. A potential reversal here will not be too surprising. But as traders we will need to see evidence of a bearish reversal here before looking for any bearish trades.
If the index breaks the trend line on this hourly chart or more to the point, goes below 5733, the most recent low, then that could be the trigger I am looking for. Should that happen, then we could see a run towards liquidity that would now be resting below recent lows circa 5672.
By Fawad Razaqzada, market analyst with FOREX.com
You would think that these risk events would weigh on risk appetite somewhat but so far this hasn't been the case.
Still, be on the look out for a possible reversal sign as the index tests this key zone starting around 5755ish to around 5665ish. A potential reversal here will not be too surprising. But as traders we will need to see evidence of a bearish reversal here before looking for any bearish trades.
If the index breaks the trend line on this hourly chart or more to the point, goes below 5733, the most recent low, then that could be the trigger I am looking for. Should that happen, then we could see a run towards liquidity that would now be resting below recent lows circa 5672.
By Fawad Razaqzada, market analyst with FOREX.com
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