S&P 500 Price Analysis: Post-coronavirus-closing wound-licking could be capped at 3,059 – Confluence Detector

The S&P 500 Index is attempting recovery following the re-closing of parts of the economies of some hard-hit states. Florida is closing its beaches and California its bars, as Texas' positive hit-rate is on the rise. Futures are pointing higher but technicals show where the limit awaits.

The Technical Confluences Indicator is showing that the S&P 500 faces resistance at 3,025, which is the convergence of the Simple Moving  Average 5-15m, the Bollinger Band 1h-Middle, the Fibonacci 23.6% one-day, and the 200-day SMA. 

Further up, the next cap for the shares index is at 3,040, which is where the Fibonacci 23.6% one-week, the Fibonacci 38.2% one-day, and the SMA 100-15m meet up.

The upside target is the strong confluence of the Bollinger Band 4h-Middle and the Fibonacci 61.8% one-day. 

Looking down, some support awaits at 3,018, which is where three SMAs converge: the 50-15m, the 10-1h, and the 5-4h.

The next cushion for the S&P 500 Index is at 2,999, where the Fibonacci 23.6% one-month and the BB 1h-Lower hit the price.

Here is how it looks on the tool:

Confluence Detector

The Confluence Detector finds exciting opportunities using Technical Confluences. The TC is a tool to locate and point out those price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc. Knowing where these congestion points are located is very useful for the trader, and can be used as a basis for different strategies.

This tool assigns a certain amount of “weight” to each indicator, and this “weight” can influence adjacents price levels. These weightings mean that one price level without any indicator or moving average but under the influence of two “strongly weighted” levels accumulate more resistance than their neighbors. In these cases, the tool signals resistance in apparently empty areas.

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