S&P 500 Futures: Path of least resistance is down ahead of retail sales – Confluence Detector

S/P 500 futures are on the back foot as investors focus on weak Chinese retail sales rather than upbeat Gross Domestic Product figures. The focus now shifts to US retail sales in June. Did coronavirus hold spending back? Jobless claims could also trigger volatility. How are futures positioned on the technical charts?

The Technical Confluences Indicator is showing that S&P 500 futures are facing three resistance cluster. The first awaits at 3,228, which is the convergence of the previous 4h-high, the Fibonacci 38.2% one-day, and the Pivot Point one-week Resistance 2.

Close by, another cap awaits at 3,233, which is the meeting point of the previous monthly high and the Fibonacci 23.6% one-day.

Further above, 3,251 is the upside target. It is the confluence of Bollinger Band 4h-Upper and the previous yearly high.

Looking down, there is only one substantial support line at 3,201. The Simple Moving Average 10-4h, the PP one-day S1, and the PP one-week R1 converge there.

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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