Yesterday, the S&P 500 closed the day at new all-time highs as the market continues to be supported by the Mag7 stocks. This week was basically uneventful with just the ISM Services PMI being the only notable release and, although it surprised to the upside across the board, the jump in prices paid index could be a worrying signal. Today we will see the latest US Jobless Claims figures and then the calendar is empty until the US CPI next Tuesday. The market should start to think about how it wants to position itself into the inflation report.
S&P 500 Technical Analysis – Daily Timeframe
On the daily chart, we can see that the S&P 500 last week pulled back into the trendline following a bit more hawkish than expected Fed but bounced back strongly and rallied all the way up to fresh new all-time highs. If we get another pullback into the trendline we can expect the buyers to lean on it again to position for new highs.
S&P 500 Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that we got a small pullback recently into the 4930 level where the buyers stepped in immediately and pushed the price to new highs. The sellers don’t have much to lean onto here and they should keep on waiting for the break of the major trendline before starting to look for bearish opportunities.
S&P 500 Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see that we have a minor support around the previous high at the 4973 level where we can also find a trendline for confluence. This is where the buyers should step in with a defined risk below the trendline to position for new highs. The sellers, on the other hand, will want to see the price breaking lower to pile in and target a drop into the major trendline.
