Intraday Market Analysis – S&P 500 Holds New Record High

By Orbex

SPX 500 soars to ATH

Growth stocks help lift the S&P 500 index to an all-time high.

The rally has gained traction after it cleared the previous peak at 4270. This has convinced trend followers that the bulls are still in charge of the action. The index is heading towards 4320.

The RSI has returned to the neutral area but its bearish divergence may foreshadow a pullback. Short-term buyers may take profit at the first sight of weakness.

4270 is the immediate support. Then the former supply zone around 4245 would be a major support.

EURGBP tests bearish trendline

The pound retreats as Britain awaits the EU’s nod to extend the trade grace period for Northern Ireland. The euro has consolidated its recent gains after closing above 0.8580 with 0.8565 establishing itself as a support level, the base of the latest rally.

Price action is testing again the falling trendline which has been acting as a key resistance.

The crowded trade is heavily skewed to the sell-side. A bullish breakout above 0.8610 would prompt sellers to cover, building momentum for a potential reversal.

NZDUSD retreats to critical support

A new round of lockdowns across Australia is taking a toll on its neighbor.

Indeed, the kiwi has met stiff selling pressure at 0.7100. The latest drop below the psychological level of 0.7000 may have put a dent in buyers’ optimism.

The RSI is rising back from an oversold situation. Profit-taking may lead to a limited rebound. The bulls will need to push through 0.7050 to reverse their predicament. A fall below 0.6960 however, may shatter the hope for a rebound and trigger a new round of sell-off as buyers scramble to get out.

By Orbex