End of the Week Technical S&P 500 View

End of the Week Technical S&P 500 View

End of the Week Technical S&P 500 View
End of the Week Technical S&P 500 View Getty Images

The S&P 500 futures are approaching the end of the week with a very light calendar today as they roll from the September to the December contract. While all seems to point to a quiet day, we must remember that Hurricane Irma will make landfall on the mainland U.S. in the hours to come; so what seems to be a quiet market could be disturbed quickly if traders decide to remove risk going into an uncertain weekend.

For today, we are still looking at the September futures contract.  The support zone highlighted in gray on the chart below is still holding; and until price converts that to resistance, we continue to look to buy between the 2459 to 2455 area today.

However, should price break below 2455, we have no intention of buying this market.  Instead, we would look for lower prices with our first target at 2443.75, which was the low of this week on Tuesday.

To the upside, we expect gains to be limited, using the two trend lines on the chart as guidelines. If this morning’s 9:30 a.m. EST regular open is quiet, then we would expect resistance at the blue trendline at the 2464.00 area. If the momentum is moderately strong to the upside, then we would look for resistance at the upper green trend line at 2466.50.

Any resistance should lead to a test back to the 2459.00 area at the very least. If price does break above the trend lines, then the natural next target would be this week’s 2469.50 high. While we do not expect the market to reach that level, we should note that if it did, we believe that buy stops above 2470 would push this market up to fill the gap at 2474.00 very quickly.

The information contained above may have been prepared by independent third parties contracted by Nadex. In addition to the disclaimer below, the material on this page is for informational and educational purposes only and should not be considered an offer or solicitation to buy or sell any financial instrument on Nadex or elsewhere. Please note, exchange fees may not be included in all examples provided. View the current Nadex fee schedule. Nadex accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representations or warranties are given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk and any trading decisions that you make are solely your responsibility Trading on Nadex involves financial risk and may not be appropriate for all investors. Past performance is not necessarily indicative of future results. Nadex instruments include forex, stock indexes, commodity futures, and economic events.

Nadex binary options and spreads can be volatile and investors risk losing their investment on any given transaction. However, the limited-risk nature of Nadex contracts ensures investors cannot lose more than the cost to enter the transaction. Nadex is subject to U.S. regulatory oversight by the CFTC.