S&P 500 technical analysis: Understanding the recent sell-off and forecasting future price


In this video, I look at the recent S&P 500 technical analysis and provide a price forecast based on the findings (spoiler: IMHO, we are headed to 4200). A surprising selloff occurred following a rally on Friday, and we’ll explore the reasons behind it while considering possible future price movements.

Key Points within the S&P 500 e-mini futures analysis video

  • Yellow, green, and purple channels in S&P 500 e-mini futures
  • Recent sell-off triggered at the top of the green channel
  • Upcoming resistance at 4178 and possible breakout scenarios

S&P 500 Technical Analysis: Channels and Touch Points

The S&P 500 e-mini futures technical analysis on the two-hour time frame shows three channels: yellow, green, and purple. The yellow channel starts with the first touch point and pivot low points on the 13th of March, featuring touch points at the bottom and others on the 22nd of March, April 3rd, and April 4th.

On Friday, the market rallied to create a second touch point with the pivot point on April 4th, leading to the formation of the green channel. The purple channel will also be followed in this analysis.

Sell-Off Triggered at the Top of the Green Channel

On the one-hour time frame, a sell-off was triggered at the top of the green channel after Friday’s rally. The trend line stopped the sell-off, and a new channel was formed with the bottom band of this trend line. Three touch points on the top were observed on the 12th and 13th of April.

Why Multiple Channels Matter

These channels and junctions are important because market participants, including trading algorithms and professional traders, are likely monitoring them. The dotted line represents the midpoint of the yellow channel, and the market is approaching 4178, which is also the top of the high on April 12th. This indicates potential sellers in the market.

Potential Future Price Movements I’m looking at

There are multiple possible scenarios for future price movements. One possibility is a drop, followed by a breakout of the channel to reach the top of the purple channel, close to the 4200 round number. Alternatively, the market may rally up to the purple top band and then follow a different path to reach the 4200 round number.

In either scenario, profit-takers may choose to take partial or full profits from previously profitable long positions. As always, trade at your own risk and visti ForexLive.com technical analysis for additional perspectives on S&P 500 technical analysis and price forecasts.