Fundamental
Overview
The S&P 500 continues
to consolidate near the all-time high as the election uncertainty keeps a lid
on further gains. The election is going to be a major event for the market with
a red sweep seen as the most bullish scenario,
while a blue sweep could trigger some short term weakness. In the bigger picture, the bullish trend should remain intact amid the Fed’s easing cycle into a resilient economy.
S&P 500
Technical Analysis – Daily Timeframe
S&P 500 Daily
On the daily chart, we can
see that the S&P 500 is still consolidating near the all-time high. From a
risk management perspective, the buyers will have a better risk to reward setup
around the trendline. The sellers, on the other hand,
will want to see the price breaking below the trendline to start targeting the
5720 level next.
S&P 500 Technical
Analysis – 4 hour Timeframe
S&P 500 4 hour
On the 4 hour chart, we can
see more clearly the rangebound price action between the 5920 resistance and the 5830 support. The buyers
will want to see the price breaking higher to extend the rally into new highs,
while the sellers will look for a break below the trendline to target new lows.
S&P 500 Technical
Analysis – 1 hour Timeframe
S&P 500 1 hour
On the 1 hour chart, there’s
not much we can add here as the choppy price action doesn’t give any clear
level where to lean onto. The election uncertainty is keeping the status quo
for now. The red lines define the average daily range for today
Upcoming
Catalysts
Today we get the US ADP and the US GDP. Tomorrow, we have the US PCE, the US
Jobless Claims and the US Employment Cost Index. Finally, on Friday, we
conclude the week with the US NFP and the US ISM Manufacturing PMI.