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S&P 500: Path of least resistance is to the upside after topping a major barrier – Confluence Detector

The S&P 500 stock index’s gains have been somewhat limited due to tensions between the US and China over Hong Kong. However, hopes for a swift recovery, and plenty of funds from the Federal Reserve are supporting it. And now, futures on America’s most important index has crossed a technical milestone and may continue running higher. 

The Technical Confluences Indicator is showing that the S&P 500 has topped the 3,047 barrier, which is the convergence of the Pivot Point one-week Resistance 2, the Bollinger Band 15min-Middle, and the Simple Moving Average 5-15m. This level now works as support.

Looking up, the initial target is 3,057, where the BB 15min-Upper and the previous 4h-high meet up.

The upside target is 3,067, which is the confluence of the PP one-day R1 and the BB 1h-Upper.

Below 3,047, the next cushion is 3,044, which is where the SMA 10-15m and the previous daily high converge. 

All in all, the path of least resistance is to the upside. 

Here is how it looks on the tool:

Confluence Detector

The Confluence Detector finds exciting opportunities using Technical Confluences. The TC is a tool to locate and point out those price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc. Knowing where these congestion points are located is very useful for the trader, and can be used as a basis for different strategies.

This tool assigns a certain amount of “weight” to each indicator, and this “weight” can influence adjacents price levels. These weightings mean that one price level without any indicator or moving average but under the influence of two “strongly weighted” levels accumulate more resistance than their neighbors. In these cases, the tool signals resistance in apparently empty areas.

Learn more about Technical Confluence

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