Range Markets

The S&P 500 Index extended its gains on the first day of the third quarter amid hopes for a vaccine and mixed economic data. Stocks now face a critical test – US Non-Farm Payrolls figures for June, which will likely show an increase in employment. How is the index positioned on the technical charts?

The Technical Confluences Indicator is showing that the S&P 500 faces initial resistance at around 3,120, which is the convergence of the Fibonacci 38.2% one-month and the previous 1h-high.

The upside target is 3,157, which is where the Pivot Point one-day Resistance 2 and the previous week’s high meet up.

Support awaits at 3,112, which is the confluence of the PP one-week R1 and the Fibonacci 23.6% one-day.

It is followed closely by 3,105, a juncture including the Bollinger Band one-day Middle and the Fibonacci 38.2% one-day.

The downside target is at 3,082, where the SMA 10-one-day, the BB 1h-Middle, and the PP one-day S1 converge.

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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