S&P 500 Highlights:
- S&P 500 coiling on the daily chart as indecision dominates
- Watching last week's high/low levels for cues
- Tactical considerations in current environment
Check out our team of analysts' Top Trading Opportunities for 2018 in the DailyFX Trading Guides.
The past few weeks have brought a good spat of volatility for the very short-term trader, but anything beyond a few days at most has been tough to get a handle on. It was just a correction, no, the S&P 500 is putting in a top, no, just a correction, and so on.
Congestion and indecision is reigning supreme right now. The current environment could get choppier before it gets better, which means we need to be patient before making too much of a commitment either way. Continued coiling of price action could be a good thing, though, as these situations of diminishing volatility can lead to powerful moves.
Which way? Again, that is yet to be determined. But whichever way the ball starts rolling is the way we'll look to go. Last week's high/low are starting to hold increasing importance during this indecisive period, from 2647 as support up to 2789 as resistance.
Further contraction of price then a break above or below the aforementioned thresholds is ideal. There is of course room for a fake-out, but we'll address that a later time should it become relevant.
Struggling with rising volatility? We've got a guide designed to help you - Building Confidence in Trading.
S&P 500 Daily Chart
If you'd like to listen in on live analysis pertaining to global equity indices (and commodities), you can join me every Tuesday at 10 GMT time for my technical insights.
S&P 500 Trader Resources
Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment , quarterly trading forecasts , analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex .
---Written by Paul Robinson, Market Analyst
To receive Paul's analysis directly via email, please SIGN UP HERE
You can follow Paul on Twitter at @PaulRobinsonFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from IG .