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S&P500 Passed Important Technical Point

23 January 04:26 PM

Exchange news, S&P 500. Is it the end of good luck at stock exchange? European investors prefer waiting for the development of events, rather than taking drastic action. On Monday morning indexes have frozen, and their values are not very different from the ones that were at the closing on Friday.

Major indexes have slightly risen:
- British index FTSE 100 has risen by 0.05 percent since the opening of trading and amounted to 5731.55 points;
- French index CAC 40 has dropped by 0.10 percent and amounted to 3318.24 points;
- German index DAX has dropped by 0.19 percent and amounted to 6392.20 points.

S&P500 future has passed an important technical point 1300.00, and the market is more optimistic about further rise:

This stipulated mass buying on the one hand – clearly observed at positive buy-sell delta:

and end of short transactions on the other: cluster charts show apparent interest within 1306.75 - 1308.50 zone, and these were mostly sales:

As explained by Igor Vasev, the head of Department at Masterforex-V Trading Academy, market profile and volume profile clearly show that last week major volume was gathered around the point of 1310.25, formed by Friday sales (this can be seen on the picture above):

Consequently, this week future is rather likely to move within the margins of the zone created by previous weeks’ volumes, namely 1288.50 - 1310.25. If point 1310.25 is passed, there will appear a strong signal for further rising trend, whereas short-term sales will be regarded below 1288.50.

Coming quarterly reports of large companies are to be kept in mind; they will be published this week and may serve as “the engine” of the market. 

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