Technical Analysis

S&P500 (SPX) Price Analysis – June 14, 2024

By LonghornFX Technical Analysis
Jun 14, 20243 min

Daily Price Outlook

During the European trading session, the S&P 500 index has prolonged its fourth consecutive upward trend and still showing a bullish sentiment in the market.

It is currently trading around 5,433 level, hitting the intra-day high of 5,441 level. Investors have been buoyed by several factors contributing to this upward trajectory. Firstly, there has been upbeat economic data indicating easing inflation pressures.

Additionally, the Federal Reserve has adopted a supportive stance towards the market. Despite keeping interest rates unchanged, the Fed indicated progress in tackling inflation concerns and reduced its forecast for rate hikes in 2024 from three to one.

This shift towards a more accommodative approach has reassured investors that the central bank intends to sustain a supportive monetary policy, which is favorable for the growth of the equity market.

Furthermore, the corporate earnings have generally been robust, with many companies surpassing earnings expectations. This fundamental strength in corporate America has bolstered confidence among investors, driving stock prices higher.

Fed's Policy Shift and Economic Data and its Impact on S&P 500

On the US front, the Federal Reserve's policy decisions and economic data releases have had a strong impact on the S&P 500 index in recent days. However, the Fed's acknowledgment of easing inflationary pressures and its tempered rate hike expectations have provided a significant boost to market sentiment.

Investors interpret the Fed's cautious approach as a signal that the central bank will not prematurely tighten monetary policy, which would have otherwise weighed on stock prices.

Moreover, softer-than-expected inflation data, such as the producer price index (PPI) and consumer price index (CPI) reports for May, have reinforced the Fed's stance and contributed to the market's bullish outlook. These reports suggest that inflation may be transitory rather than persistent, alleviating one of the primary concerns for investors.

Geopolitical Tensions in the Middle East and Renewed Political Uncertainty in Europe and its Impact on S&P 500 Index

Despite the bullish momentum, geopolitical tensions in the Middle East and political uncertainties in Europe pose potential risks to the S&P 500 index. The ongoing conflict in Ukraine and tensions in the Middle East have the potential to disrupt global markets and affect investor sentiment negatively.

Any escalation in these regions could lead to volatility in oil prices, impacting energy stocks and broader market indices.

Moreover, renewed political uncertainties in Europe, such as the snap election call in France, add more risk into the market. Political instability can create uncertainty among investors, affecting their risk appetite and potentially leading to market fluctuations.

S&P 500 Price Chart - Source: Tradingview
S&P 500 Price Chart - Source: Tradingview

S&P500 (SPX) - Technical Analysis

The S&P 500 is showing signs of a potential pullback after reaching record highs. While the index is currently trading above its pivot point at $5,446.46, the technical indicators suggest caution is warranted.

The Relative Strength Index (RSI) reading of 69 indicates an overbought condition, which could precede a correction. Additionally, the 50-day Exponential Moving Average (EMA) is providing support at $5,303.01, well below the current price.

Traders should be mindful of key resistance levels at $5,478.89, $5,510.93, and $5,550.84. A break above these levels could fuel further upside momentum, but a rejection at these levels could trigger a deeper pullback.

On the downside, immediate support rests at $5,402.31, followed by $5,349.10 and $5,299.23. A breach of these levels could accelerate selling pressure.

Related News

- EUR/USD Price Analysis – June 14, 2024

- GOLD Price Analysis – June 14, 2024

- S&P500 (SPX) Price Analysis – June 7, 2024



24/7 live support, lightning fast withdrawals, guaranteed safe and reliable trading platforms with a true ECN broker.