Past performance is not an indicator of future results
The SPX500 reacted positively to yesterday's retail number, which beat consensus. Core Retail Sales came in at 1.7%, ahead of the 1% expected. The index was faded towards the market close and then traded down in the Asian session. However, SPX500 strength is maintained with the daily chart (left) in the bullish area between the upper blue and upper red bands. The softness overnight has the hourly (right) at its central pivot (gray shaded horizontal). If this fails, the next level of support is at the S1 pivot (green shaded area). Both pivots are bolstered by price support confluence. In order for us to be comfortable that bulls are exploiting this potential "dip in the uptrend", both the EMAs and the stochastic need to turn bullish. If this happens, the hourly stochastic moving towards its upper quintile will be regarded as a further bullish development.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.