Search ForexCrunch

Futures on the S&P 500 Index have rebounded from the lows after Pfizer and BioNTech reported progress in a coronavirus vaccine candidate. The initial trials have shown a strong immune response to COVID-19. Stocks are set to extend the extraordinary gains seen in the second quarter – the best since 1998 – at the beginning of Q3. How is S&P 500 positioned? 

The Technical Confluences Indicator is showing that S&P 500 faces some resistance at 3,113, which is the convergence of the Pivot Point one-week Resistance 1, the Bollinger Band 4h-Upper, and the PP one-day R2. 

A stronger cap awaits at 3,122, which is where the all-important Fibonacci 61.8% one-month hits the price. The upside target is 3,167, where the PP one-day R3 awaits.

Support is at 3,098, which is the meeting point of the Fibonacci 61.8% one-week and the PP one-day R1. 

Strong support awaits at 3,082, which is the confluence of the Simple Moving Average 10-one-day, the SMA 50-4h, the SMA 10-15m, and the previous daily high.

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