S&P500 chart review
Asian session and early European morning is basically silent or slightly positive. However, buyers shall remain cautious as the risk is neutral at the moment and there is no any big reason for big rally. China is on one-week holidays and will be back next week only. No any development news from US-China talks and the only significant market movers at the moment are earnings reports – speaking of which, earnings keep pushing markets higher.
Chart view did not change much however since my last review and price is only moved a little bit higher towards major resistance cluster of 2740-2750.
I am not saying that this resistance can not be broken, however, considering that on-going rally started on Christmas and there was no major correction yet…and indeed having a strong barrier ahead, I would suggest that price will at least to make a temporary stop soon around 2720-2740 area.
On the below, however, there are plenty of support levels: 2670 and 2645 are immediate supports underpinning this rally. If price retraces, these levels are good to play bounce. If broken below, price will likely to fall to 2610 and 2675 with better chances to short-term bounce.
On a longer term – and this is very controversial point – I am not convinced that this rally will continue for long. Call it a gut feeling…
Have a nice day and safe trades !