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The S&P 500 Index has been extending its gains and erased losses for the year. Can it continue to all-time highs? Here is how it is positioned on technical charts.

The Technical Confluences Indicator is showing that the S&P 500 faces resistance at 3,251, which is where the previous yearly high and the Bollinger Band 4h-Upper converge.

It is followed by 3,268, where the Pivot Point one-day Resistance 2 and the PP one-month R2.

Support awaits at 3,221, which is the confluence of the Bollinger Band 15min-Lower, the Simple Moving Average 5-4h, and the BB one-day Upper. 

The next cushion is close, at 3,214, which is where the Fibonacci 38.2% one-day and the previous weekly high meet up.

It is essential to note that resistance is stronger than support, implying a potential limited scope for moving higher in the short-term. 

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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