Search ForexCrunch

The S&P 500 has turned positive after a negative opening on Thursday which took the index to hit one-week lows at 3,020 area. The positive surprise on US durable goods orders and a shorter than expected increase on weekly jobless claims have eased concerns about a second COVID-19 wave to improve market sentiment.

With the Index moving practically unchanged on the day, the Technical Confluences Indicator shows immediate support in the vicinity of 3,060 (confluence of the SMA 5 in 15-min and Fibonacci 23,6% retracement one-day). A successful move above there might encounter resistance at 3,070 (previous month -high) before the 3,080 level (Fibonacci 38,2% retracement one-week).

On the downside, immediate support lies at the 3,045 area, the confluence of the SMA 10 in one-hour, SMA 50 in 15-minutes, Bollinger Band 1-hour Middle and the SMA 5 1-hour.

Below here there is an important support area around 3,020 the confluence of the previous low 4-hour with the mentioned 200-day SMA and Fibonacci 61,8% retracement one-week.

Here is how it looks on the tool

S&P 500 Index

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