Forex Technical Update
S&P500 15-min Chart 10:30AM PM EDT 7/3/2012
S&P 500 futures was trading up in the 30 minutes leading up to the US factory orders release at 10:00AM EDT today. In fact it already broke above the highest price level since early May at 1362.26.
Looking at the 1H chart, the market looks like it stalled, caught its breathe and is trying to reconvene the bull run it started last Monday, June 25. The momentum is persistently bullish since swing from 1306.50, as the RSI reading held above 40, even 50, and is now pushing above 60, almost kissing 70.
The upside risk remains open toward the 2012 highs in the 1410-1420 area. However failure to hold above 1355.00, can shelve this bullish outlook for a sideways, maybe even slightly bearish outlook in the short-term. A break below 1349.40 would be a more significant sign of topping, but a break of 1330 is probably a better bearish signal as it brings price below 200-hour SMA, a previous resistance pivot, and likely drag the RSI below 30.
Fan Yang CMT is the Chief Technical Strategist, trader, educator and a of the main contributors to FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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