The S&P 500 will be close during the trading session today, as we are celebrating Independence Day in the United States. That being the case, the CFD markets will be very thin, assuming you can even find a broker that’s willing to take the trade.
The S&P 500 rallied slightly during the trading session early during the day on Tuesday, reaching towards the 2740 handle. That’s an area that has been resistance a couple of times recently as marked by the horizontal line on the hourly chart. However, I think that at this point it’s likely that we continue to see a lot of noise, as the S&P 500 has to deal with the thoughts of trade wars and the like. Also, it’s possible that we may get a bit of a roll over as traders are stepping away from the markets as we roll into the holiday.
If we do break above the 2740 handle, it’s likely that we go to the 2750 handle next, followed by the 2800 level. However, I think that until we get some type of clarity with the trade situation, we will continue to go back and forth in this range, with the 2700 level underneath being supportive. Use a range bound types of systems as long as we stay in this range, perhaps taken advantage of the stochastic oscillator or the like.
The markets will continue to be very noisy, which makes a lot of sense as traders have no idea how the trade war will end, and it certainly throws a lot of questions into valuations. At this point, it is becoming very difficult to hang onto trades for any significant length of time, as we continue to see a lot of confusion.
Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.