Bullish on the S&P

Looking at the technical picture on the S&P 500 (the ‘US 500 cash’ market on our web-based platform), it is showing a fairly positive picture.

Source: Bloomberg

Firstly, if we take the timeframe out a touch and look at the weekly chart, it is clearly bullish with price looking to print a higher high. A break through the prior high of 2022 could see the channel top come into play at 2072 (a 3% move). Given this is a weekly chart, we would of course need to see the index close above the prior high on a weekly basis.

As you can also see, the 50-week average (currently at 1900) seems to be good support. So as long as the US index can hold this level, I would prefer to hold a bullish bias.

If we hone in and look at the hourly chart, the rising trend drawn from the 21 October high has been broken and we could see a move down to the 2000 level. 2000 is also horizontal and trend support, so this could be a level at which the ‘buy the dips’ crowd return to the market before we see a final push back above the 2022 level.

Click to enlarge
Click to enlarge

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.