Monday's Market Minute: S&P Futures Bounce, But Trend is Still Down

S&P 500 futures made a big push over the 3,800 level on Friday, notching a 3.4% gain as the contract bounced off lows it made near 3,639 and rocketed back above 3,900. But the /ES is still in a downward channel, with the upper trendline beginning with the highs from late March and traveling downward along the other highs from April and June.

S&P 500 futures made a big push over the 3,800 level on Friday, notching a 3.4% gain as the contract bounced off lows it made near 3,639 and rocketed back above 3,900. But the /ES is still in a downward channel, with the upper trendline beginning with the highs from late March and traveling downward along the other highs from April and June.

Price also is now trading near the 21-Day Exponential Moving Average, which is the nearest of the major moving averages and could be an important resistance level to overcome. In terms of technical developments, the Moving Average Convergence-Divergence (MACD) and the Parabolic SAR both are making bullish crossovers today. However, there’s also resistance to watch for near the 4,000 level.

Technical analysis typically discourages looking at arbitrarily assigning importance to round, even numbers, but in this case, this level matches up with the yearly -1 Standard Deviation Channel. Just beyond this point is also the previously mentioned downward trendline near roughly 4,050, so stay alert for a potential pullback if the price reaches these levels.

Image sourced from Shutterstock

This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice.

Posted In: Partner ContentTD AmeritradeEarningsNews

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.