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Article / 07 June 2016 at 12:18 GMT

S&P 500 'on a flyer' today after seeing off recent resistance?

Technical Analyst / FuturesTechs
United Kingdom
  • S&P 500 may be gunning for a pitch at its all-time high
  • Very big resistance on the weekly continuation chart
  • Nasdaq isn't mirroring the S&P 500 action
 This could be a good day for the bulls. Pic: iStock

By Clive Lambert

Last week saw a number of attempts by the S&P 500 and its counterparts to go lower, all of which found "responsive buyers", not least on Friday when the US jobs numbers disappointed, prompting a short-lived selloff. 

The problem then was that we were still trading below the April 20 high at 2105.25. This level was seen off yesterday and in overnight trade we've added a bit more to print 2116.25 (I'm referencing the front month (June'15) Future here).

Yesterday's high was 2112.25 and as I write this, with about 1-2 hours to go before US "day session" trade kicks into life, we are above here, which means we could be gapping higher.

All of this is bullish and suggests we could be gearing up for an assault on 2134, the all time high that was set last May. We have Fibonacci extension targets above that at 2159.50 then 2170.25.

Chart 1: S&P 500 Futures Daily chart - trying to see off big resistance...
S&P 500 Daily
 Source: CQG

Chart 2:  S&P 500 Futures Weekly continuation chart - ...REALLY BIG resistance...
S&P 500 Weekly
  Source: CQG

The only thing that would change this is if we fell back through the gap then kept going and closed tonight below 2103 or even worse below 2097.50 and/or 2094, which would leave a rather nasty reversal pattern on our chart.

In the Dow Futures (June '15) the gap support and key early reference below is 17945.

The all-time high in the Dow was set last year at 18334 and is protected by this year's year-to-date high at 18083.

The Nasdaq bulls haven't had quite such a busy overnight session and currently this isn't gapping higher, trading at/just below yesterday's 4536.50 high as I write. This is a slight worry for the bulls as the Nasdaq can often be the trailblazer for big moves, and when it doesn't confirm its cousins...

– Edited by Clare MacCarthy


Clive Lambert is chief technical analyst at FuturesTechs

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