S&P 500 Technical Analysis | Forexlive

The S&P 500 this week held into last week’s
gains as the lack of economic releases and the Thanksgiving Day holiday
contributed to a steady risk sentiment. On the data front, the US Jobless Claims on
Wednesday beat expectations across the board, which is a good thing for the
market at the moment given some recession fears, although one beat after a
series of misses doesn’t change the trend. Today, all eyes will be on the US
PMIs, but given the early closure for Black Friday we might not see much
movement, unless the data surprises.

S&P 500 Technical
Analysis – Daily Timeframe

On the daily chart, we can see that the S&P 500
broke through the swing high at 4543 as this week didn’t provide any bearish
catalysts. The price is now approaching the cycle high at 4607 and we can
expect some profit taking around these levels, which would finally provide a
decent pullback.

S&P 500 Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can see that
the price is diverging with
the MACD, which is generally
a sign of weakening momentum often followed by pullbacks or reversals. This
might be another hint that we could see a pullback very soon, so the buyers
should decrease the risk, especially since this rally looks to be based more on
FOMO rather than a fundamental driver.

S&P 500 Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can see more
closely the divergence with the MACD, which has been going on since the
breakout of the key trendline. The
buyers are likely to keep leaning on the minor trendline and the red 21 moving average to
target the cycle high. The sellers, on the other hand, will want to see the
price breaking lower to target a drop into the 4490 level and upon a further
break, the support around
the 4400 level.

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