January 23, 2025 at 10:33AM
Fundamental
Overview
The S&P 500 has been
keeping the bid since last week as the softer than expected US inflation data
gave the market a boost.
We haven’t got any key
economic report since then and no comment from Fed speakers given that they are
in the blackout period.
The main driver of the
price action this week has been Trump and his tariffs threats. We saw a quick
dip on Tuesday as he talked about imposing 25% tariffs on Canada and Mexico
next week, but the market eventually erased the losses.
Overall, it seems like the
market is optimistic about tariffs and the news that Trump is
considering a 10% tariff on China might be a signal that he won’t be as aggressive as promised during his
campaign given that back then he talked about 60% tariff on China.
S&P 500
Technical Analysis – Daily Timeframe
On the daily chart, we can
see that the S&P 500 almost made a new all-time high as optimism returned
in the market since last week’s softer US inflation data. The sellers will
likely pile in around these levels with a defined risk above the all-time high
to position for a drop back into the lows. The buyers, on the other hand, will
want to see the price breaking higher to increase the bullish bets into new
highs.
S&P 500 Technical
Analysis – 4 hour Timeframe
On the 4 hour chart, we can
see that we have an upward trendline defining the bullish momentum. The
buyers will likely lean on the trendline to position for a rally into a new
all-time high, while the sellers will look for a break lower to increase the
bearish bets into new lows.
S&P 500 Technical
Analysis – 1 hour Timeframe
On the 1 hour chart, there’s
not much we can add here as the buyers will look for a bounce around the
trendline, while the sellers will look for a break lower to target the 6000
level next. The red lines define the average daily range for today.
Upcoming
Catalysts
Today we get the latest US Jobless Claims figures, while tomorrow we conclude
the week with the US Flash PMIs.
This article was written by Giuseppe Dellamotta at www.forexlive.com.
