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S&P 500 Float Around Key Resistance while Crude, Gold Pushed Higher

Gary Kerdus

THE TAKEAWAY: S&P 500 floating around key resistance while crude and gold have broken higher. The Dollar initially broke lower on QE yet appears to be holding at potential support.


S&P 500 – Prices have rallied and stalled at what appears to be an ascending channel line (red line) which may act as significant resistance. A break higher may expose the December 27, 2007 high at 1523.60 and possibly find a ceiling of resistance around that area. Conversely, if the channel line holds as resistance, then potential downside levels of support are marked around 1440.20 (black line) and 1426.40 (orange line) both of which were past levels of resistance and could act as future levels of support. A push below the 1426.40 area may find support at the bottom portion of the rising trend channel line (grey line) around the 1396.90 area.


SP_500_Floating_around_Key_Resistance_while_Crude_Gold_Pushed_Higher_body_Picture_9.png, S&P 500 Float Around Key Resistance while Crude, Gold Pushed Higher

Daily Chart - Created Using FXCM Marketscope 2.0




CRUDE OIL Prices broke above the potential levels of resistance around 97.64 which was an area of convergence where potential consolidation highs of resistance (upper red line) and falling trendline (grey line) resistance met. The next area where the market may find a ceiling could be around the 101.05 area which was once a past level of support and could now act as a level of potential future resistance. Alternatively, if prices begin to trade lower, then marked areas of support appear around 97.64 where the consolidation resistance area could become support and is in line to meet with the back side of the falling trendline (grey line) which could act as support too. A break below the 97.64 area may find support around 94.14, 92.59 or 87.72 which were all previously established levels of resistance-turned-support and may also serve as a floor again.


SP_500_Floating_around_Key_Resistance_while_Crude_Gold_Pushed_Higher_body_Picture_11.png, S&P 500 Float Around Key Resistance while Crude, Gold Pushed Higher

Daily Chart - Created Using FXCM Marketscope 2.0




GOLD Prices have pushed through a potential area of resistance near the rising channel line and may be targeting 1790.55/oz, a high established on February 29. Downside levels of support appear around the 1716.15/oz area where previous resistance acted as future support and could serve as such again. A break below the 1716.15/oz area may find a sticking point around the 1629.17/oz to 1608.53/oz area which once was an area of consolidation resistance and could act as potential future support.


SP_500_Floating_around_Key_Resistance_while_Crude_Gold_Pushed_Higher_body_Picture_14.png, S&P 500 Float Around Key Resistance while Crude, Gold Pushed Higher

Daily Chart - Created Using FXCM Marketscope 2.0




US DOLLAR The Dollar has continued to trend lower after the Federal Reserve Bank policy officials pledged to dilute the US Dollar by implementing additional monetary easing. Price brok through potential levels of support around the 9,816 area. Interestingly enough, the greenback stalled at 9,738 where an indecision candle formed with a large wick to the south. A break below the 9,738 area may find support around 9,672 which was once an area where traders bid-up the price. Alternatively, a bid higher may find possible resistance around 9,816 which was previous support and could now act as a ceiling of future resistance. Moreover, a push above 9,738 may expose 9,893 which was past support and could act as potential future resistance.


SP_500_Floating_around_Key_Resistance_while_Crude_Gold_Pushed_Higher_body_Picture_17.png, S&P 500 Float Around Key Resistance while Crude, Gold Pushed Higher

Daily Chart - Created Using FXCM Marketscope 2.0




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