TRY/USD Forex Signal: The Lira Stabilized After Central Bank’s Decision – 28 November 2022

The bank’s statement had expected inflation to remain higher than expected for some time due to the rise in energy imports. 

Today’s recommendation on the TRY/USD

Risk 0.50%.

Best buying entry points

  • Entering a long position with a pending order from levels of 18.50
  • Set a stop-loss point to close below the 18.25 support levels.
  • Move the stop loss to the entry area and continue to profit as the price moves by 50 pips.
  • Close half of the contracts with a profit of 70 pips and leave the rest of the contracts until the strong resistance levels at 18.99.

Best-selling entry points

  • Entering a short position with a pending order from levels of 18.99
  • The best points for setting stop-loss are closing the highest levels of 19.15.
  • Move the stop loss to the entry area and continue to profit as the price moves by 50 pips.
  • Close half of the contracts with a profit equal to 70 pips and leave the rest of the contracts until the 18.55 support levels.

The TRY/USD stabilized during the early trading this morning, after the decision of the Turkish Central Bank at the end of trading last week, where the Monetary Policy Committee of the Bank reduced the interest rate by 150 basis points. It brought the interest rate to 9%, a decision that the markets were waiting for, because of the Turkish president’s insistence on reducing the interest rate to the single digits.

The bank’s statement had expected inflation to remain higher than expected for some time due to the rise in energy imports. In the meantime, investors followed the statements of Turkish President Recep Tayyip Erdogan last Saturday that his country does not face problems in the extension of energy during the coming winter months, in contrast to some difficulties that are expected to face the European Union countries. In this regard, Erdogan said: “While European countries are thinking about how to spend the winter with the continuing energy crisis, we are entering the winter with peace of mind,” adding that Ankara is preparing to buy wheat through the Black Sea grain deal to produce flour for poor countries. The July agreement won Signed between Ukraine and Russia with the support of Turkey and the United Nations in order to facilitate food exports.

TRY/USD Technical Analysis

On the technical front, without major changes, the TRY/USD recorded stability within a narrow range that has continued for nearly two months, as the USD/TRY pair traded the highest moving averages 50, 100 and 200 on the time frame for the day. The price is also trading between these averages on the time frame.

 At the same time, the pair settled within the rectangle range in the four-hour time frame, which is shown on the attached chart. Where it is trading the highest support levels that are concentrated at 18.40 and 18.20 levels, respectively. On the other hand, the pair is trading below the 18.70 resistance level as well as the psychological resistance at 19.00. Any drop in the pair represents an opportunity to buy back again. Please adhere to the numbers in the recommendation with the need to maintain capital management.

TRY/USDReady to trade our free daily Forex trading signals? We’ve shortlisted the best Forex brokers in the industry for you.

USD/JPY Technical Analysis: Breaking the General Trend Continues – 28 November 2022

Tokyo figures showed that processed food prices rose 6.7% in November, contributing about 1.4 percentage points to overall inflation and outpacing the energy impact. 

The USD/JPY currency pair had a new bearish trading week in terms of performance, as it moved towards the 138.05 support level, which is an important support area in the path of the currency pair. It recorded historical records, followed by a Japanese intervention to prevent further collapse. This performance is on an important date this week, as the US markets will return to normal work after a long holiday, in addition to the markets anticipation of the important US job numbers. The US dollar, despite the recent sell-off, still has the strengths for a strong bullish rebound against all the other major currencies, as the stronger safe haven and the US Federal Reserve’s hawkish policy provide it with more impetus.

Advertisement

In contrast, Tokyo’s inflation rate exceeded expectations to record its fastest rate since 1982, an acceleration that indicates that price growth nationwide will also accelerate in November after months of a weak yen and higher energy costs. Japan’s consumer prices excluding fresh food rose 3.6% in the capital, Tokyo, in November. The faster pace was driven by further gains in the price of processed food, according to the Ministry of Internal Affairs on Friday. The reading was the highest since April 1982 and stronger than analyst expectations of 3.5%.

Overall, the continued acceleration in core inflation challenges Bank of Japan Governor Haruhiko Kuroda’s view that current cost-push inflation is only temporary and that continued stimulus is required to ensure sustained price growth. With gains in energy costs likely to roll back as massive government support takes effect in the coming months, economists largely agree with Kuroda that inflation in Japan will decline, although opinions differ on the extent. This means that the Bank of Japan is likely to stick to ultra-low interest rates for the remainder of Kuroda’s term. Market speculation is largely focused on what will happen after the portfolios leave in April.

Tokyo figures showed that processed food prices rose 6.7% in November, contributing about 1.4 percentage points to overall inflation and outpacing the energy impact. Much of that food, including raw materials, is imported, and thus is directly affected by the weak yen. About 833 food items including dairy saw price increases in November, according to a survey by the Teikoku Data Bank. The report also expected Japan to experience another wave of price increases in February or March of next year, with the costs of another 2,000 items expected to rise.

Real wages have fallen since April, adding to factors affecting consumers’ purchasing power and contributing to the Bank of Japan’s concerns that an early rise in interest rates could upset the economy. To mitigate the impact of rising prices on consumption, Japanese Prime Minister Fumio Kishida put in place an economic stimulus package last month, funded in part by an additional budget of 29.1 trillion yen ($210 billion).

USD/JPY Forecast

  • In the near term and according to the performance on the hourly chart, it appears that the USD/JPY is trading within the formation of a sharp descending channel.
  • This indicates a strong short-term bearish momentum in the market sentiment.
  • Therefore, the bears will look to extend the current declines towards 138.06 or lower to the 137.70 support.
  • On the other hand, the bulls will target short-term profits at around 138.686 or higher at the 139.032 resistance.

In the long term and according to the performance on the daily chart, it appears that the USD/JPY is trading within the formation of a sharp descending channel. This indicates a strong long-term bearish bias in market sentiment. Therefore, the bears will target long-term profits at around 136.28 or lower at the 134.31 support. On the other hand, the bulls – the bulls – will target potential rebound profits at around 140.23 or higher at the 142.21 resistance.

USD/JPY

Ready to trade our daily Forex analysis? We’ve made a list of the best Forex brokers worth trading with.

XAU/USD (Gold) Technical Analysis: The price of Gold is Still Neutral – 28 November 2022

In general, rising hopes about a slowdown in US interest rate hikes by the Federal Reserve contributed to an increase in demand for the yellow metal. 

  • Despite the decline in the price of the US dollar during the past week, the gains of the bullish retracement of the gold price (XAU/USD) did not exceed the level of 1761 dollars per ounce.
  • It rebounded from the support level of 1727 dollars per ounce in the same trading of the short week.
  • Strong movements are expected for the gold market this week as investors and liquidity return to the markets amid cautious anticipation of the US jobs numbers this week, which will have a strong reaction to the future of raising interest rates from the US Federal Reserve.
Advertisement

Afraid of market volatility? Gold is a great safe haven asset

  Trade Gold Now!

In general, rising hopes about a slowdown in US interest rate hikes by the Federal Reserve contributed to an increase in demand for the yellow metal. The minutes of the last meeting of the Federal Reserve, which were released last Wednesday, provided further evidence that the US central bank is considering slowing the pace of raising interest rates as soon as next month. The minutes said that a “significant majority” of meeting participants judged a slower pace of rate hikes likely to be “appropriate soon”. A slower rate of rate hikes would better allow the Fed to assess progress toward its goals of maximum employment and price stability.

However, the Fed also said that some participants felt that the central bank would need to raise US interest rates higher than previously expected in order to reach a position constrained enough to bring down inflation.

With trading activity remaining subdued after the Thanksgiving holiday on Thursday, US stocks turned underperform during trading on Friday. Despite choppy trading, the Dow ended the session at a new closing high in seven months. The main averages ended the short session amid a clear difference in performance. While the Dow Jones rose 152.97 points, or 0.5 percent, to 3,4347.03, the S&P 500 fell 1.14 points, or less than a tenth of a percent, to 4,026.12 and the Nasdaq fell 58.36 points, or 0.5 percent, to 11,226.36.

In the week the holiday was off, the Dow rose 1.8 percent, the Standard & Poor’s jumped 1.5 percent and the Nasdaq advanced 0.7 percent. The weak performance came in the Wall Street markets as many investors and traders stayed away from their desks in light of the markets holiday.

Gold Forecast

In the near term and according to the performance on the hourly chart, it appears that the price of XAU/USD is trading within an ascending channel formation. This indicates a significant short-term bullish bias in market sentiment. Therefore, the bulls will look to extend current gains towards $1,767 or higher to $1,776 an ounce. On the other hand, the bears will target short-term profits at around $1,746 or lower at $1,736 an ounce.

In the long-term and according to the performance on the daily chart, it appears that the XAU/USD gold price has recently completed forming the XABCD double bottom pattern before declining. This indicates that the bulls are trying to control the price in the long term. Therefore, they will target extended gains around $1,803 or higher at $1,869 an ounce. On the other hand, the bears will target long-term earnings at around $1,699 or lower at $1,628 an ounce.

Gold

Ready to trade today’s Gold forecast? Here are the best Gold brokers to choose from.

GBP/USD Technical Analysis: Bulls Control Continues – 28 November 2022

According to the fundamental analysis, the GBP/USD currency pair is trading affected by the announcement that the preliminary UK PMI for the month of November outperformed the S&P Global/CIBS forecast services by 48 with a reading of 48.8. 

  • Amid the US dollar’s decline against the other major currencies, the share of the GBP/USD was the strongest, as it recently jumped to the 1.2153 resistance level, its highest in three months.
  • This happened before closing last week’s trading, around the 1.2092 level.
  • The British pound has risen over the past week, with analysts saying that part of the rally can be attributed to the stabilization of interest rate hike expectations from the Bank of England.
Advertisement

Last week, policymakers at the Bank of England emphasized that more rate hikes were needed to control inflation, raising investor expectations about the number of rate hikes yet to be issued by the central bank. In this regard, Deputy Governor Dave Ramsden said in a speech last Thursday that he would “continue to vote to respond forcefully” to signs of persistent inflationary pressures.

As there are no credible signs that UK inflation is ready to calm down materially, further spikes are therefore likely. Most economists polled by Reuters expect the Bank of England to raise interest rates by another 50 basis points in December, although there is a large minority saying it is likely to raise rates by 75 basis points.

According to the fundamental analysis, the GBP/USD currency pair is trading affected by the announcement that the preliminary UK PMI for the month of November outperformed the S&P Global/CIBS forecast services by 48 with a reading of 48.8. The manufacturing PMI and the composite PMI beat expectations at 45.8 and 47.5, respectively, with readings of 46.2 and 48.3. Prior to that, it was announced that public sector net borrowing in Britain for the month of October exceeded expectations at 15.376 billion pounds, with 12.728 billion pounds.

From the US, orders for durable goods for October exceeded expectations at 0.4% with a change of 1%. On the other hand, defense ex-durable goods orders exceeded the forecast by -0.1% with a change of 0.8%, while the durable goods orders excluding transportation exceeded the estimated change by 0% with a change of 0.5%. Elsewhere, orders for non-defense capital goods from aircraft exceeded the forecast change of 0% with a change of 0.7%.

GBP/USD Forecast

In the near term and according to the hourly chart, it appears that the GBP/USD is trading within a sharp bullish channel formation. This indicates a strong short-term bullish momentum in market sentiment. Therefore, the bulls will target short-term profits at around 1.2118 or higher at the 1.2169 resistance. On the other hand, the bears will target potential pullback profits at around 1.2012 or lower at the 1.1961 support.

In the long term and according to the performance on the daily chart, it appears that the GBP/USD currency pair is trading within an ascending channel formation. This indicates a significant long-term bullish momentum in market sentiment. Therefore, the bulls will target long-term profits at around 1.2249 or higher at the 1.2494 resistance. On the other hand, the bears will look to pounce on profits at around 1.1794 or lower at the 1.1536 support.

GBP/USD

Ready to trade our daily Forex analysis? We’ve made a list of the best Forex brokers worth trading with.

EUR/USD Technical Analysis: Watch for an Important Trading Week – 28 November 2022

The Eurozone likely experienced the second month of double-digit inflation in November, according to analysts’ expectations ahead of important data that ECB officials await. 

  • Despite the short trading last week amid the extended US holiday, the EUR/USD currency pair remained to rebound upwards.
  • It tested the 1.0448 resistance level, before closing the week’s trading stable around the 1.0393 level.
  • The psychological resistance 1.0400 still supports the bulls’ control. But at the same time, the euro is looking for self-motivating factors besides the weakness of the US dollar.
Advertisement

The Eurozone likely experienced the second month of double-digit inflation in November, according to analysts’ expectations ahead of important data that ECB officials await. And while the overall pace of consumer price increases is likely to have slowed for the first time in a year and a half, it is still above 10%, as nearly all economists expect. The median of 32 estimates in a Bloomberg survey is a result of 10.4%, official figures to be released this week. So, Marco Valli, Loredana Maria Federico, and Tulia Bocco, economists at UniCredit in Milan, whose forecasts match the average, said in a report: “Head and core inflation is likely to peak early next year.”

The data is pivotal for the ECB as the most up-to-date leading indicator of price pressures ahead of the December 15 decision, and as input to forecasts that policymakers will consider at that meeting. For their part, officials indicated that the unexpected rise could prompt them to raise interest rates for the third time in a row by 75 basis points, while signs of weakness may help build consensus towards a smaller move. Recalling a series of “negative surprises” from such figures in the past, ECB Vice President Luis de Guindos told Bloomberg TV this month that he believed inflation would not subside quickly.

“Over the coming months,” he said, “inflation will hover around the current level, which is slightly above 10%,”he added.

There is a range of a full percentage point between the highest and lowest expectations in a Bloomberg survey.

Core inflation, which strips out volatile items such as energy and food, may have remained unchanged at 5%. The action is also closely watched by officials as a measure of underlying momentum. Eurozone data masks significant differences across the region.

Also due this week are the latest CPI reports from the four largest economies in the region, with Germany currently enjoying the fastest inflation rate. Economists expect it to show a slowdown in all markets except Spain. The European Central Bank’s chief economist, Philip Lane, in an interview with Market News, highlighted how different energy systems affect national data. He said Spain’s previous adjustment to higher prices means inflation is already weakening there, and others will follow.

“Sooner rather than later, the accumulating corridor will turn into downward pressure,” he said “But let’s see if the summit will be on this side of Christmas or the other,” he added.

EUR/USD Forecast

As I mentioned before, the price stability of the EUR/USD will remain above the 1.0400 psychological resistance. This supported the bulls’ domination of the trend, taking into consideration the movement of technical indicators toward overbought levels. Therefore, I would prefer to sell the EURUSD from the resistance levels of 1.0465, 1.0520, and 1.0600, respectively.

The euro is still facing weakness factors led by the continuation of the Russian-Ukrainian war. On the other hand, according to the performance on the daily chart, it will be important to test the 1.0285 support level for the bears to regain control.

EUR/USD

Ready to trade our Forex daily forecast? We’ve shortlisted the best Forex brokers in the industry for you.

 

Dow Jones Technical Analysis: The Index Extends its Gains – 28 November 2022

There was no significant economic data released on Friday, but investors will face a busy week amidst a slew of data.

  • The Dow Jones Industrial Average rose during its recent trading at the intraday levels, to achieve gains for the third consecutive day, by 0.45%.
  • It gained about 152.97 points, to settle at the end of trading at the level of 34,347.04, ending its session at its highest level since late April.
  • This happened after the index stopped on Thursday for the Thanksgiving holiday, and after recording gains in Wednesday’s trading by 0.28%.
  • During the week, the index rose by 1.8%.
Advertisement

Stock markets are crashing again

As of Friday, the DJIA benchmark is up more than 19.5% from its 52-week low of 28,725.51, reached on Sept 30. Typically when a particular index or asset rises 20% or more from its recent bear market low, it is said to have technically exited bear market territory.

The index posted gains for the second in three weeks, as the minutes of the November federal policy meeting released on Wednesday helped support stocks, even as the tightening of restrictions imposed to combat the outbreak of the COVID-19 virus on movement and business in China undermined the outlook for the global economy. 

As a result, investors were holding out hope on Friday that the Federal Reserve would switch to a less aggressive pace of rate hikes amid growing concerns about an economic slowdown in 2023.

There was no significant economic data released on Friday, but investors will face a busy week amidst a slew of data.

Dow Jones Technical Analysis

Technically, the index continues to benefit from the continuous positive pressure due to its trading above the simple moving average for the previous 50 days, with the influx of positive signals on the relative strength indicators. This was despite reaching highly overbought areas, and the index is affected by its earlier breach of a bearish corrective slope in the short term, as shown in the attached chart for a (daily) period, to attack with its recent trading the important 34,281.36 resistance level.

Therefore, our expectations indicate the continuation of the index’s rise during its upcoming trading, especially in the event of confirming its breach of the 34,281.36 resistance, to target the resistance level of 35,372.26.

Dow Jones Industrial Average

Natural Gas Technical Analysis: Price is Trying to Gain Positive Momentum – 28 November 2022

The bullish price action stemmed from concerns about possible US rail workers’ strike in early December, which was exacerbated by weak market participation as many traders exited the market for a long weekend.

Spot natural gas prices (CFDS ON NATURAL GAS) declined in early trading on Monday, to record new daily losses until the moment of writing this report, by -0.83%. It settle at a price of $6.654 per million British thermal units, after declining during Friday’s trading by -5.35%, during the past week, natural gas recorded a gain of 8.17%.

Advertisement

US natural gas futures fell nearly 4% on Friday, with the upcoming contract expiring next month and expectations of less cold weather over the next two weeks. Strong gains earlier in the week managed to lead the market to post its biggest weekly gain in three months.

The bullish price action stemmed from concerns about possible US rail workers’ strike in early December, which was exacerbated by weak market participation as many traders exited the market for a long weekend.

The US Energy Information Administration said on Wednesday that utilities pulled 80 billion cubic feet of gas from storage during the week ending November 18, slightly less than expected.

Meanwhile, British and Dutch gas prices were mixed due to profit-taking after the recent uptrend, EU energy ministers failed to agree on a gas price ceiling, and heating demand increased in less cold and windy weather.

Separately, Russia’s Gazprom said it would ship about 42.6 million cubic meters of gas to Europe via Ukraine on Sunday, a level similar to recent days.

Natural Gas Technical Analysis

  • Technically, the price, with its recent declines, is trying to reap its profits and gain some positive momentum that may help it recover and rise again.
  • At the same time, it is trying to drain its clear overbought with the relative strength indicators, especially with the start of negative signals from them, considering being affected by breaching a bearish corrective slope line.
  • Earlier, with the continuation of the positive support for its trading above its simple moving average for the previous 50 days, as shown in the attached chart for a (daily) period.

Therefore, our expectations suggest a return to the rise of natural gas during its upcoming trading, especially throughout its stability above the 6.412 support level to target the 7.788 resistance level.

Natural Gas

Ready to trade FX Natural Gas? Here are the best commodity trading brokers to choose from.

NZD/USD Forecast: Kiwi Pauses at the 200-Day EMA – 28 November 2022

The next week should be very choppy but seems to have more of an upward tilt.

  • The NZD/USD currency pair has pulled back just a bit during the trading session on Friday, as we continue to hang around the 200-Day EMA.
  • Keep in mind that this is an area that will attract a lot of attention as the 200-Day EMA typically defines the trend for longer-term traders.
  • The 0.63 level above seems to be a bit of resistance, and that could open up the possibility of a move to the 0.64 level.
Advertisement

image

The Role of Central Banks Is At Stake

If we turn around and breakdown below the 0.62 level, then it’s possible that we could go back down to the 0.61 level. Anything below there opens up the possibility of a move down to the 0.60 level, which is where the 50-Day EMA comes into the picture. Currently, we are sitting just at the 200-Day EMA, so it certainly looks as if we are going to try to go to the outside, but with the jobs number coming out on Friday, a lot of people will be paying close attention to how stubborn employment is, because quite frankly the Federal Reserve has to pay close attention to inflationary pressures.

The Royal Bank of New Zealand recently raised rates a full 75 basis points, and therefore people think that the RBNZ will continue to be very hawkish. If the Federal Reserve sounds even slightly dovish, that will almost certainly send the New Zealand dollar higher over the longer term. With this being the case, it’s likely that we will see a lot of volatility, and of course people paying close attention to the idea of what happens next with the interest rate situation in America. I do believe that the Federal Reserve is going to stay extraordinarily tight for the long term, with higher rates than most traders are used to. Whether or not New Zealand follow suit remains to be seen, but if we do get some type of major selloff in risk appetite, then it does make a lot of sense that we would roll over and start breaking down.

The next week should be very choppy but seems to have more of an upward tilt. That being said, I would not expect anything major until we get through the Friday session, once we get that jobs figure and try to figure out how aggressive the Federal Reserve is going to have to be going forward, and how aggressive they may be during the December rate announcement.

NZD/USD Chart

Ready to trade our Forex daily analysis and predictions? Here are the best Forex brokers to choose from.

USD/BRL: Troubling Signs amidst Consolidation and Volatility – 28 November 2022

The next two days of trading in the USD/BRL will likely provide ample wagering clues for speculators who have the desire to pursue the currency pair

The USD/BRL went into the weekend near its high water mark after trading had been completed, leaving traders with speculative considerations.

Advertisement

Latin American currencies can give great price movements.
Trade them with our featured broker.

Trade Now !

Traders should be ready for a rather intriguing opening with the USD/BRL today. After going into the weekend near the 5.4098 ratio, the USD/BRL finished close to the high that had been seen for the week. Traders now need to wait for an opening that will likely demonstrate a gap, and importantly a larger amount of volume.

The USD/BRL high last week was near the 5.4235 mark on Friday, before declining slightly in the closing hours. What makes the price action of the USD/BRL intriguing is that the currency pair stumbled to a low of nearly 5.2990 on Thursday when financial houses reacted to the notion the U.S Federal Reserve will start to soften its hawkish interest rate policy.

Trading Volumes will Create Potential Volatility Early this Week for the USD/BRL

However, instead of sustaining the realms of its lower price range, the USD/BRL reverted to an incremental climb upwards. And importantly this occurred when U.S financial houses were largely missing from Forex because of the Thanksgiving holiday.

The return of full trading volume and the fact the USD/BRL is near technical highs may be a reason for concern among speculators. Cautious traders might want to watch the first hour or so of trading to get a feel for market conditions. If the 5.4000 level is sustained this may be a rather bullish signal. The problem within the USD/BRL is, even though U.S central bank policy may be aiming for a less aggressive interest rate policy, global financial houses have concerns about the outlook for Brazilian fiscal policy.

  • Having actually had a rather consolidated week of trading and showing the ability to traverse lower towards the 5.3000 ratio needs to be considered too by speculators.
  • Traders may be able to take advantage of current USD/BRL perceptions, using support levels as a way to buy the USD/BRL and look for reversals higher.  

Short-Term USD/BRL Price Action will be a Solid Indicator

The next two days of trading in the USD/BRL will likely provide ample wagering clues for speculators who have the desire to pursue the currency pair. When full trading volume reemerges by late today and tomorrow, traders will be able to see if the 5.4000 level has been sustained. If this higher support ratio proves durable it may be a bullish signal for traders. There is certainly a chance the 5.3600 to 5.3500 values could be tested again lower, and if so, this may be a better area to try and buy the USD/BRL for conservative wagers looking for another climb upwards.

Brazilian Real Short-Term Outlook:

Current Resistance:  5.4295

Current Support:  5.3860

High Target: 5.4875

Low Target:  5.3061

USD/BRL

Ready to trade our Forex daily forecast? We’ve shortlisted the best Forex brokers in the industry for you.

S&P 500 Forecast: Index Ends the Week Quietly – 28 November 2022

Right now it looks like the buyers probably have the upper hand, so more of a “buy on the dip” type of attitude would probably be more likely than not.

  • The S&P 500 Index has done very little during the trading session, showing signs of a little bit of negativity and hesitation near the 200-Day EMA.
  • The 200-Day EMA is an indicator that a lot of people pay attention to, but at this point in time it’s likely to mean very little due to the fact that the Friday session was shortened trading.
  • Therefore, it’s likely that we continue to see a little bit of uncertainty.

Buyers Are In Control

If we break out above the highs from last week, then it could open up the possibility of a move to the 4150 level. The 4150 level opens up the possibility of 4200, and then eventually the 4300 level. That being said, you need to pay close attention to what the Federal Reserve is doing, especially as the jobs number will come out on Friday. It certainly looks as if the buyers are trying to take the upper hand at the moment, but if the Federal Reserve has reasons to remained extraordinarily tight, that might cause a little bit of a pullback.

At this point, we are getting close to the end of the year and almost everybody on Wall Street assumes there is going to be a “Santa Claus rally”, which is when money managers start buying things in order to show clients that they are in fact invested in all of the right assets. It’s a situation where the market will quite often rally a bit, but then fall apart at the beginning of the year because quite frankly nobody believes in anything at the moment. You should also pay close attention to the idea of interest rates and what they are doing, due to the fact that higher interest rates for longer could really start to weigh upon earnings.

If we break down below the 3900 level, then we will challenge the 50-Day EMA. Anything below there could send this market much lower but I think in the short term we probably have more chop ahead than anything else. You will probably have to stick to short-term charts, but right now it looks like the buyers probably have the upper hand, so more of a “buy on the dip” type of attitude would probably be more likely than not. Either way, position sizing needs to be paid close attention to.

S&P 500 Chart

Ready to trade our S&P 500 daily forecast? Here are the best CFD brokers to choose from.