The bullish momentum around the S&P 500 Index remains unabated, in the wake of the massive US fiscal and monetary stimulus. Meanwhile, the narrative on the economic rebound also keeps the bulls hopeful. How far this risk-rally will continue?
According to the Technical Confluences Indicator, immediate resistance is aligned at 3128, which is the convergence of the previous day high and the Simple Moving Average 5-one-hour.
Acceptance above that level opens doors towards the next healthy hurdle at 3144, where the Bollinger Band 4-hour Upper and Pivot Point 1 Day Resistance 1 intersect.
On the resurgence of supply, the index could test the strong support placed at 3115, the confluence of Bollinger Band 4-hour Middle, 5-SMA on the daily chart and Fibonacci 23.6% one-day.
Further south, a mild cushion awaits at 3105 (200-SMA on one-hour/10-SMA on four-hour).
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.
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