S&P 500 Futures: Battle lines drawn as a turbulent week draws to an end – Confluence Detector

S/P 500 futures are looking for a new direction in a week that saw hopes for the COVID-19 vaccine push stocks to positive on the year but concerns about the disease weighed on it. How is the index positioned ahead of Friday’s session?  The technical battle lines are drawn.

The Technical Confluences Indicator is showing that the S&P 500 futures face resistance at 3,216, which is the convergence of the Bollinger Band 1h-Middle, the previous daily high, and the Pivot Point one-day Resistance 1.

A considerable cap awaits at 3,227, which is the meeting point of the PP one-month R1, the PP one-week R2, and the Fibonacci 161.8% one-day.

Strong support is at 3,201, which is the confluence of the PP one-day S1, the Simple Moving Average 5-one-day, the PP one-week R1, and more.

Further down, the next cushion is at 3,184, where the PP one-day S3 and the previous weekly high converge.

S&P 500 Chart

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

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