50 BTC prize pool!
Get your share!
i'm in

S&P 500 price analysis

US equities edged higher during the session on underlying optimism over a gradual reopening of the economy, but there was a late sell-off as vaccine optimism dipped and the S&P 500 index posted a loss of 1 per cent.

Market highlights from the past week

Thursday, May 14: US equities opened lower amid underlying unease over economic and earnings trends, although there was a recovery late in the day as the banking sector rebounded and the S&P 500 index posted a 1.1 per cent gain

Friday, May 15: Fed Chair Jay Powell reiterated that the central bank was prepared to do more if needed.

Monday, May 18: US equity futures posted strong gains into the New York open and gains extended during the day as global confidence increased and energy prices made further headway. The S&P 500 index posted a 3.1 per cent  gain with futures little changed on Tuesday

Tuesday, May 19: US equities edged higher during the session on underlying optimism over a gradual reopening of the economy, but there was a late sell-off as vaccine optimism dipped and the S&P 500 index posted a loss of 1 per cent.

Wednesday, May 20: US equities opened sharply higher with further expectations of a robust recovery fuelled by the reopening of states and very low interest rates. The S&P 500 index posted a gain of 1.65 per cent.

S&P 500 price analysis

Let us have a look at the technical viewpoint. 

Monthly: Strong selling pressure from the 3398 multi-year high. This resulted in losses of more than 35 per cent to the 2180 low. April posted net gains, but all trading was inside the March range, an indecisive inside month. 

Weekly: Mixed trading for the past three weeks as we continue to trade close to the 61.8 per cent pullback level of 2937 (from 3398-2179).

S&P 500 price analysis Daily: Previous resistance located at 2972. 18th May price action has left a Marabuzo support level at 2905. This area has been pivotal. Trend line resistance is seen at 3014

S&P 500 price analysis Intraday 1-hour: We have a 261.8% extension level located at 3038. 

S&P 500 price analysis Outlook: Although there is scope for further corrective upside pressure, with trend line resistance and a 261.8% extension in close proximity, we look for rallies to be limited. 

Possible trade setup

Action: Selling at 3014

Stop: 3044

Target: 2905

Potential return on risk to first target:  R3.6 (reward 109 / risk 30)

Risk Warning - Your capital is at risk - Losses can exceed deposits

Trading spot foreign exchange and futures on margin carries a high level of risk and may not be suitable for all investors. You may lose all your capital. Past performance is not indicative of future results. The high degree of leverage can work against you as well as for you. Before deciding to invest in spot foreign exchange or futures you should carefully consider your investment objectives, level of experience, and risk appetite. If you are in any doubt about investment or the mechanics of such products, you should seek independent financial advice

iPhone Image
Trade the world’s top tokenised stocks, indices, commodities and FX pairs with crypto or fiat
iMac Image
Trade the world’s top tokenised stocks, indices, commodities and FX pairs with crypto or fiat
iMac Image
VISA MASTERCARD Yandex Money WIRE Faster payments SEPA PCI BTC ETH