S&P500 Daily Chart 3:10PM EDT 6/19/2012
The S&P500 futures 4H Chart shows the equity index extending its recovery in June against the decline in May. Today during the 6/19 US session, the spx pushed above 1347, where we saw resistance after last week’s and this week’s initial risk-on pop. Risk recovery continues ahead of the FOMC meeting tomorrow.
The market seems to be pricing in some more expectation of QE. I am not completely sure about that though because gold resisting a strong rally, and it should be boosted with QE expectation.
But if this theory is true, and Bernanke disappoints, A fall back below 1327 in the SP500 should be a sign of bearish continuation. The bearish scenario would be more clear if we fall from our current levels, in the Asian-European session, with the daily RSI reading holding below 60 and turning back down.
Otherwise, the next key resistance is near 1379.30, a previous pivot, and “central pivot” of the consolidation in March and part of June.
Fan Yang CMT is a trader, educator and a Chief Technical Strategist for FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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