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Trade of the week: SPX500_m Breakout Time?


By ForexTime 

The next few days promise to be volatile for the S&P 500 thanks to fundamental and technical forces.

The index may be awaiting a new catalyst that will trigger a bullish or a bearish breakout.

If we look at the technicals, despite the consolidation period, the price is still on an uptrend with resistance at 4160 and support at 4070. The index is comfortably trading above the 50-100-200 SMAs, but the Relative Strength Index signals that the prices are flirting with overbought situations.

Here are 3 reasons why the SPX500_m could breakout this week…

  1. Start of the US earnings season

It’s that time of the year again!

The first quarter earnings period began last week. JPMorgan Chase and Wells Fargo led the way, with Citigroup following closely behind. All three banks comfortably exceeded expectations. The recent chaos in the banking sector made these results a welcome one. Fears of a US recession remain, however. This could lead investors to carefully examine the pending results of Charles Schwab as well Goldman Sachs and Bank of America this week. When…

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