Now that this risk is out
of the way, and barring new geopolitical escalations, we should have a clear
path to new all-time highs. The focus should now switch back to economic data
and the Fed.
Some hawkish repricing on strong US data could weigh on the market
in the short-term, but those will likely be dip-buying opportunities as long as
there’s no re-acceleration in inflation.
S&P 500
TECHNICAL ANALYSIS – DAILY TIMEFRAME
On
the daily chart, we can see that
the S&P 500 closed the Monday gap as
the market rallied hard after Trump’s de-escalation. There’s not much we can
glean from this timeframe, so we need to zoom in to see some more details.
S&P 500
TECHNICAL ANALYSIS – 4 HOUR TIMEFRAME
On
the 4 hour chart, we can see that
we have a downward trendline defining the bearish momentum. We can expect the
sellers to lean on the trendline with a defined risk above it to keep pushing
into new lows. The buyers, on the other hand, will look for a break higher to
increase the bullish bets into new highs.
S&P 500 TECHNICAL
ANALYSIS – 1 HOUR TIMEFRAME
On the 1 hour chart, we can
see that we have a minor support zone around the 6,945 level. This is where we
can expect the buyers to step in with a defined risk below the support to keep
pushing into new highs. The sellers, on the other hand, will look for a break
lower to extend the pullback into the next support around the 6,910 level
