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.

Bullish
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.

S&P 500
Click to enlarge
S&P 500
Click to enlarge

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. 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. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Find articles by analysts

This information has been prepared by IG, a trading name of IG Markets Limited and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. 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. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in line with their foreign investment allowance and may not use credit or debit cards to fund their international account.