{"id":20276,"date":"2022-01-06T07:11:00","date_gmt":"2022-01-06T07:11:00","guid":{"rendered":"https:\/\/youtrading.com\/en\/?p=20276"},"modified":"2022-01-06T13:59:18","modified_gmt":"2022-01-06T13:59:18","slug":"sp-500-technical-analysis-watch-cloud-support","status":"publish","type":"post","link":"https:\/\/youtrading.com\/en\/sp-500-technical-analysis-watch-cloud-support\/","title":{"rendered":"S&#038;P 500 Technical Analysis &#8211; Watch Cloud Support"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"20276\" class=\"elementor elementor-20276\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<div class=\"elementor-inner\">\n\t\t\t\t<div class=\"elementor-section-wrap\">\n\t\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-21342ec elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"21342ec\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-fc686ea\" data-id=\"fc686ea\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-a6b63af elementor-widget elementor-widget-text-editor\" data-id=\"a6b63af\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>The <a href=\"https:\/\/bit.ly\/3oUNeWo\" target=\"_blank\" rel=\"noopener\">S&amp;P 500<\/a> has tumbled sharply lower and turned negative on the year so far after the FOMC meeting minutes revealed a much-more hawkish stance from FED policy makers.<\/p><p>According to the FOMC minutes, \u201cmany participants judged that the appropriate pace of balance sheet runoff would likely be faster than it was during the previous normalization episode\u201d.<\/p><p>The market reaction immediately saw US stocks falling, <a href=\"https:\/\/bit.ly\/3pZAGfs\" target=\"_blank\" rel=\"noopener\">bond yields<\/a> surging, and the <a href=\"https:\/\/bit.ly\/3IMUkUF\" target=\"_blank\" rel=\"noopener\">US dollar<\/a> currency starting to strengthen as traders flocked back into the buck. This was indeed a hawkish reaction.<\/p><p>Other key takeaways from the Minutes were the balance sheet and tapering speed. The FED said, \u201cmany participants also judged that monthly caps on the runoff of securities could help ensure that the pace of runoff would be measured and predictable\u201d.<\/p><p>Additionally, the Minutes showed \u201cparticipants noted that the current size of the balance sheet is elevated and would likely remain so for some time after the process of normalizing the balance sheet was underway.\u201d<\/p><p>Fund flows into the index were quite significant at the start of the year, despite the S&amp;P 500 lagging the <a href=\"https:\/\/bit.ly\/31XuuwD\" target=\"_blank\" rel=\"noopener\">DJIA<\/a> and the <a href=\"https:\/\/bit.ly\/3J0m0Wm\" target=\"_blank\" rel=\"noopener\">NASDAQ<\/a>. However, these funds may look to enter back into the market at lower levels if the selling starts to pick-up again.<\/p><p>In terms of negative price catalysts, no new US stimulus, worsening global consumption, and the potential for more COVID-19 restrictions over the coming months are all likely to create solid headwinds for the index.<\/p><p>Something else to consider is market sentiment. That ActivTrader sentiment platform shows that nearly 70 percent of traders are bullish towards this market. I believe this is negative because the near-term fundamentals and technicals are quite worrying.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-b2228f8 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"b2228f8\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-117958f\" data-id=\"117958f\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-92d3746 elementor-widget elementor-widget-image\" data-id=\"92d3746\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-image\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/bit.ly\/3oUNeWo\" target=\"_blank\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"450\" height=\"164\" src=\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2022\/01\/usa500-chart.jpg\" class=\"attachment-large size-large wp-image-20292\" alt=\"\" \/>\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-cf73b74 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"cf73b74\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-c5d341a\" data-id=\"c5d341a\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-bbdf836 elementor-widget elementor-widget-text-editor\" data-id=\"bbdf836\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>Usually, we should look to fade sentiment extremes, which would imply that more downside is possible. We probably need to see bearish sentiment to take hold before looking to buy the S&amp;P 500.<\/p><p><strong>S&amp;P 500 Short-Term Technical Analysis<\/strong><\/p><p>The four-hour time frame shows that the index has fallen back inside the Ichimoku cloud. Please note the widening of the cloud is a leading indication of the growing reversal risk.<\/p><p>Downside risks would increase if the price crosses the cloud, and the Lagging Line (Dark Green) crosses the Ichimoku cloud. A deeper pullback towards the 4,500 regions would then be plausible.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-e47eebe elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"e47eebe\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-148a8b3\" data-id=\"148a8b3\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-b21e6a8 elementor-widget elementor-widget-image\" data-id=\"b21e6a8\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-image\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/bit.ly\/3oUNeWo\" target=\"_blank\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"936\" height=\"530\" src=\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2022\/01\/usa500-4h.jpg\" class=\"attachment-large size-large wp-image-20294\" alt=\"\" \/>\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-7d6b4876 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"7d6b4876\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-41a835ed\" data-id=\"41a835ed\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-343cb8da elementor-widget elementor-widget-text-editor\" data-id=\"343cb8da\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p><a href=\"https:\/\/bit.ly\/3oUNeWo\" target=\"_blank\" rel=\"noopener\">See real-time quotes<\/a> provided by our partner.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-f00c200 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"f00c200\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-40e0e86\" data-id=\"40e0e86\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-501111c elementor-widget elementor-widget-text-editor\" data-id=\"501111c\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p><strong>S&amp;P 500 Medium-Term Technical Analysis<\/strong><\/p><p>Looking at the daily time chart, the central focus remains the Ichimoku cloud, with the price unable to hold below the cloud during the entire run higher during the course of last year.<\/p><p>I would also like to note that the S&amp;P 500 has no major sell signals yet, and it would require a meaningful sell signal, such as the price crossing the cloud and the Lagging Line to hold a medium-term bearish view.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-80b2b2c elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"80b2b2c\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-e205a7b\" data-id=\"e205a7b\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-ce2d9f5 elementor-widget elementor-widget-image\" data-id=\"ce2d9f5\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-image\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/bit.ly\/3oUNeWo\" target=\"_blank\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"936\" height=\"529\" src=\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2022\/01\/usa500-1d.jpg\" class=\"attachment-large size-large wp-image-20295\" alt=\"\" \/>\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-6e5ecea8 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"6e5ecea8\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-39d56bf7\" data-id=\"39d56bf7\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-8b0df2a elementor-widget elementor-widget-text-editor\" data-id=\"8b0df2a\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p><a href=\"https:\/\/bit.ly\/3oUNeWo\" target=\"_blank\" rel=\"noopener\">See real-time quotes<\/a> provided by our partner.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>The S&amp;P 500 has tumbled sharply lower and turned negative on the year so far after the FOMC meeting minutes revealed a much-more hawkish stance from FED policy makers. According to the FOMC minutes, \u201cmany participants judged that the appropriate pace of balance sheet runoff would likely be faster than it was during the previous [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":15786,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[6],"tags":[257,42,27,67,279],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v17.6 (Yoast SEO v20.11) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>S&amp;P 500 Technical Analysis - Watch Cloud Support - Youtrading UK<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/youtrading.com\/en\/sp-500-technical-analysis-watch-cloud-support\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"S&amp;P 500 Technical Analysis - Watch Cloud Support S&amp;P 500 Technical Analysis - Watch Cloud Support\" \/>\n<meta property=\"og:description\" content=\"The S&amp;P 500 has tumbled sharply lower and turned negative on the year so far after the FOMC meeting minutes revealed a much-more hawkish stance from FED policy makers.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/youtrading.com\/en\/sp-500-technical-analysis-watch-cloud-support\/\" \/>\n<meta property=\"og:site_name\" content=\"Youtrading UK\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/YouTradingEnglish\/\" \/>\n<meta property=\"article:published_time\" content=\"2022-01-06T07:11:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-01-06T13:59:18+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2021\/09\/GettyImages-1335447913-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"721\" \/>\n\t<meta property=\"og:image:height\" content=\"240\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Nathan Batchelor\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"S&amp;P 500 Technical Analysis - Watch Cloud Support S&amp;P 500 Technical Analysis - Watch Cloud Support\" \/>\n<meta name=\"twitter:description\" content=\"The S&amp;P 500 has tumbled sharply lower and turned negative on the year so far after the FOMC meeting minutes revealed a much-more hawkish stance from FED policy makers.\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Nathan Batchelor\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/youtrading.com\/en\/sp-500-technical-analysis-watch-cloud-support\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/youtrading.com\/en\/sp-500-technical-analysis-watch-cloud-support\/\"},\"author\":{\"name\":\"Nathan Batchelor\",\"@id\":\"https:\/\/youtrading.com\/en\/#\/schema\/person\/88ce8e6688d6c690a83e6cbeee2eccab\"},\"headline\":\"S&#038;P 500 Technical Analysis &#8211; 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