Daily Market Technical Analysis: S&P 500 Looks Like it Has Hit a Top

S&P 500 (1,985.54)

The market looks like it has lost a considerable amount of momentum. It appears we have formed a top and could be in for a correction lower.

We are currently testing a support level near 1,985.50. A break below this level sees another level at 1,984.50. A daily close below this level could open the doors for 1,967.80 then 1,965.50. Should the market move higher, again, we need a move above 2,012.50 in order to target 2,040.

USD/JPY (¥107.288)

The U.S. Dollar is looking to hit a fresh six year high versus the Japanese yen. Right now we see short term resistance near ¥107.50. A move above this, along with a daily close, will target ¥108.20.

Should the market reverse, we have an alternate theory. A move below ¥107.01 will target ¥106.50.

A little trading strategy, prices are trading between support and resistance levels in a tight pattern. This means entering trades, on a risk to reward perspective might be tricky at this time. Short term traders should watch the market for a better opportunity to make a trade.