Summary:
- Stocks from Wall Street remain resilient to global uncertainties
- S&P 500 (US500) eyes retest of all-time highs
- The index trades near the latest local peaks
Situation on the S&P 500 (US500) chart did not change much during the past two weeks. The benchmark remains in an uptrend but has begun to struggle once it reached 2800-2850 pts area. Nevertheless ,upbeat data from the Chinese economy supports bullish trend and we cannot rule out that the index will test the latest local highs during today’s cash session. From the weekly chart perspective, upward sloping trendline that coincides with the 50-week moving average remains the support level to watch.
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Source: xStaiton5
Daily chart offers us some more insight. On D1 interval one can see that the latest decline can be viewed as just a pullback towards previously broke resistance level. Having said that, base case scenario remains intact and seems to favour bulls. All-time high near 2940 pts handle could be in buyers’ focus. Note that the US500 is trading within a clear uptrend structure since December’s low. A failure to break above the local high from 21 March could put this structure at risk and may be the first signal for sellers. As the momentum of the current upward impulse was really strong one cannot rule out that potential correction would be marked with significant momentum as well.
Source: xStation5
From the short-term point of view, the US stock market climbed back to the vicinity of the latest local high and is trading above the 50-period moving averages channel (H4 interval). The 2860 pts handle should serve as the closest resistance level while the 2790 pts area (last week’s low) could be the nearest hurdle for the bears.
Source: xStation5
