Technical analytics

S&P500 market technical outlook

S&P500

Daily chart:

Index is steadily climbs to new highs having high trending potential showed by ADX indicator. Thus we can expect a break of the upper Bollinger band at 3312.0 and further growth in direction 3350.0 and 3400.0.

H4-chart:

Local pressure of ADX at 3300.0 is growing, but a slight downward pullback may take place here as indicator readings didn’t reach trending values so far.

H1-chart:

On hourly chart the upper Bollinger band was broken. It’s a solid sign of growth extension. At the same time ADX potential is at a low level so far that may let market correct to the area of middle Bollinger band (3267.8-3275.9). Thus it’s recommended to open long trades from this level holding positions for several days in direction 3350.0 and 3400.0. 

Conclusions:

We expect completion of downward correction at 3267.8-3275.9 with switching to new upward wave aimed at 3350.0 and 3400.0.

Trading recommendations:

Longs from 3267.8-3275.9 to 3350.0 and 3400.0.