Chart of the Day: S&P500

Chart of the Day: S&P500 (23/09/2020) |

From the high made on 02/09/2020 at 3586.50 on the S&P500, it’s experienced a two wave decline which would imply that a short term reversal. However, the overall trend is to the upside. On the daily time frame, price created a bearish engulfing pattern on 21/09/2020 and yesterday’s candle was a harami or inside day. With price breaking above yesterday’s high at 3309.25, this suggest that buyers are in control and the resumption of the overall bullish trend. The key would be price closing above yesterday’s high. As far as it doesn’t go below yesterday’s low, this would imply a more bullish bias. When we observe the Dollar Index, it is evident that a base has formed and with price closing above the 09/09/2020 high at 93.63, there is a shift in bias. At present, the price is at 94.15. What is significant of this price is that the swing high made on 03/08/2020 is at 93.975. If the Dollar index is able to close above this level, not only would it imply that it is no longer trading within a range but it would also add confirmation of the start of a new trend. With U.S. Fed Chair Powell scheduled to speak later this afternoon, there is the possibility that we will experience significant volatility in the indices, metals and U.S. currency pairs.

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