Key Support Level For S&P 500 - Forex News by FX Leaders
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With the U.S. Federal Reserve due to issue its Interest Rate Statement Wednesday at 2:00 PM EST, S&P 500 futures have given back the early gains of Tuesday. At press time (6:30 PM EST), the June E-mini S&P 500 is in the process of retreating toward a key downside support level.

The Tuesday U.S. session was a whipsaw affair for the indices. Fizzled rallies were the final result for the DJIA and NASDAQ, as well as the S&P 500 SPX. Going into Wednesday’s session, it appears that an opportunity to join the prevailing bullish trend in U.S. stocks may set up nicely.

June E-mini S&P 500 Futures: Technical Outlook

On the daily chart, price of the June E-minis has rotated to the bear following the Wednesday electronic open. In the event price continues to fall, the current wave 38% retracement (2808.25) has a shot of coming into play ahead of tomorrow’s FED announcements.

June E-mini S&P 500 (ES), Daily Chart
June E-mini S&P 500 (ES), Daily Chart

Here are the levels to watch for the Wednesday session:

  • Resistance(1): Spike High, 2858.75
  • Support(1): 38% Retracement, 2808.25

Bottom Line: The long and intermediate-term trends are bullish for the S&P 500. If a chance to join the action from the daily 38% Retracement comes to pass, it isn’t a bad idea to go long.

As long as the Spike High (2858.75) remains the high watermark for this market, I will have buy orders queued up from 2809.75. With an initial stop at 2804.75, this trade yields 20 ticks on a 1:1 risk vs reward management plan.

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About the author

Shain Vernier // US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
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