English
S&P 500 positive for year, USD/JPY resumes descent while silver price sidelined
S&P 500 trades back in the green for the year as USD/JPY resumes its descent and the silver price remains sidelined amid a weakening US dollar.
S&P 500 positive for the year
The S&P 500, together with the Nasdaq 100, are trading back in positive territory for the year.
In the short-term the index may soon lose upside momentum, though, as it nears the 5,909-to-5,923 resistance area which is made up of the 3 and 25 February lows.
The US index is also as overbought on the daily Relative Strength Index (RSI) as it was in July 2024 and has left a huge gap open between Friday's 5,691 high and Monday's 5,786 low.
Potential slips may find support between the January low and the late March high at 5,786-to-5,773 ahead of the 200-day simple moving average (SMA) at 5,753 and Thursday's 5,720 high.
Resistance above the 5,909-to-5,923 resistance zone may be found around the March high at 5,986.
USD/JPY resumes its descent
USD/JPY's sharp rally over the past few days has taken it to ¥148.65, a six-week high. From this level the cross is seen to retreat with the 55-day SMA and the March low at ¥146.54-to-¥146.51 being in focus ahead of the 2 May high at ¥145.92.
While Monday's high at ¥148.65 isn't overcome, its low at ¥145.71 is expected to be slipped through in the coming days. This would indicate that the April-to-May rally has probably run its course with the ¥140.00 region being longer-term back in sight.
A currently unexpected rise above ¥148.65 would put the 200-day SMA at ¥149.67 on the map.
Silver price expected to further range trade
The price of spot silver continues to sideways trade whilst oscillating around its 55-day SMA at $32.67 per troy ounce.
For a break out of the currently forming ascending triangle to be seen, last week's high at $33.25 would need to be exceeded on a daily chart closing basis. In this scenario the late April high at $33.69 is also expected to be bettered with the March peak at $34.58 being back in focus.
Were a slip through this and last week's lows at $31.89-to-$31.67 to occur instead, the 200-day SMA at $31.26 would likely be targeted.
Connect with us
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
Professional clients trading spread bets and CFDs can lose more than they deposit.
Options and futures are complex instruments which come with a high risk of losing money rapidly due to leverage. They’re not suitable for most investors. Before you invest, you should consider whether you understand how options and futures work, the risks of trading these instruments and whether you can afford to lose more than your original investment.
Trading stocks and shares ‘on margin’ within a US options and futures account – meaning that you only finance part of the cost of acquiring a position in a security – carries additional risks over buying securities on a fully funded basis and may result in losses exceeding your original investment. Trading on margin will also result in additional costs to you as the investor and any securities purchased using margin may be held as collateral by the lender, restricting both your rights as shareholder, and your ability to use the securities until the margin trade is closed. You should familiarise yourself with these risks before trading on margin.
The value of shares, ETFs and other ETPs bought through a share dealing account, a US options and futures account, a stocks and shares ISA or a SIPP can fall as well as rise, which could mean getting back less than you originally put in. Past performance is no guarantee of future results. Some ETPs carry additional risks depending on how they’re structured, investors should ensure they familiarise themselves with the differences before investing.
Share dealing and IG Smart Portfolio accounts provided by IG Trading and Investments Ltd, CFD accounts and US options and futures accounts are provided by IG Markets Ltd, spread betting provided by IG Index Ltd.
IG is a trading name of IG Trading and Investments Ltd (a company registered in England and Wales under number 11628764), IG Markets Ltd (a company registered in England and Wales under number 04008957) and IG Index Ltd (a company registered in England and Wales under number 01190902). Registered address at Cannon Bridge House, 25 Dowgate Hill, London EC4R 2YA. IG Markets Ltd (Register number 195355), IG Trading and Investments Ltd (Register Number 944492) and IG Index Ltd (Register number 114059) are authorised and regulated by the Financial Conduct Authority.
The information on this site isn’t directed at residents of the United States, Belgium or any particular country outside the UK and isn’t intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
