With the Fed minutes just moments away, the S&P 500 could see a continuation in higher price momentum if the cup and handle technical trading pattern plays out entirely.
Technical
We have seen the formation of a cup and handle technical pattern on the S&P 500 with a breakout test of the 3904 supports in full swing. We could see prices push even higher if the Fed meeting minutes support a lower-than-expected rate hike in December. This could see prices gain momentum higher to the 4154-resistance level. If the Fed news disappoints, we could see short sellers dive in and lower prices.
Summary
A possible long entry exists from opening price levels around 4005, with a potential target point around the 4154-resistance level if supported by fundamentals. Risk measures should be in place as this could be a high-risk entry point ahead of the Fed meeting minutes.
Disclaimer: Trive South Africa (Pty) Ltd, Registration number 2005/011130/07, and an Authorised Financial Services Provider in terms of the Financial Advisory and Intermediary Services Act 2002 (FSP No. 27237). Any analysis/data/opinion contained herein are for informational purposes only and should not be considered advice or a recommendation to invest in any security. The content herein was created using proprietary strategies based on parameters that may include price, time, economic events, liquidity, risk, and macro and cyclical analysis. Securities involve a degree of risk and are volatile instruments. Market and economic conditions are subject to sudden change which may have a material impact on the outcome of financial instruments and may not be suitable for all investors. When trading or investing in securities or alternative products, the value of the product can increase or decrease meaning your investment can increase or decrease in value. Past performance is not an indication of future performance. Trive South Africa (Pty) Ltd, and its employees assume no liability for any loss or damage (direct, indirect, consequential, or inconsequential) that may be suffered from using or relying on the information contained herein. Please consider the risks involved before you trade or invest.
