Summary: 

• US500 has recovered after a dip last week
• Price now just over 10 points from all-time high
• Red close last week – only 3rd time in the past 16

The US500 has edged higher so far today and is trading back near its record peak as the US enter the market. With the European markets such as the DE30 (see our technical overview here) trading little changed on the day it is hoped the Wall Street open will bring about some moves.  

Last Monday saw the market reopen higher after the positive tax news from the US but the gap higher was swiftly closed and by Wednesday morning the market was off by around 45 points. This proved to be the low of the week at 2620.5 and the vast majority of these declines have since been recaptured. 

 The US500 has recovered the majority of last week’s sell-off and is now not far from its record peak. Source: xStation

Despite the recovery in the latter parts of last week the market did post a red close on W1 – a pretty rare occurrence of late. In fact out of the last 16 weeks there have only been 3 red closes and they have all been small in size. The long wick below and red close can be called a “hanging man” candlestick which some traders see as a reversal signal. However a break above the prior high of 2665 would negate this setup.

 The US500 printed a rare red close last week and a “hanging man” candle on W1. Source: xStation