{"id":191968,"date":"2023-06-14T10:39:22","date_gmt":"2023-06-14T14:39:22","guid":{"rendered":"https:\/\/ibkrcampus.com\/?p=191968"},"modified":"2024-01-24T12:13:26","modified_gmt":"2024-01-24T17:13:26","slug":"chart-advisor-sp-500-revisits-august-highs","status":"publish","type":"post","link":"https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/securities\/macro\/chart-advisor-sp-500-revisits-august-highs\/","title":{"rendered":"Chart Advisor: \u00a0S&amp;P 500 Revisits August Highs"},"content":{"rendered":"\n<p><strong><a href=\"https:\/\/www.investopedia.com\/contributors\/54841\/?utm_source=chart-advisor&amp;utm_campaign=fwd_chartadvisor&amp;utm_term=27774019&amp;utm_medium=email\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>By&nbsp;<\/strong><\/a><strong><a href=\"https:\/\/www.investopedia.com\/contributors\/54841\/?utm_source=chart-advisor&amp;utm_campaign=fwd_chartadvisor&amp;utm_term=27774019&amp;utm_medium=email\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>J.C. Parets<\/strong><\/a>&nbsp;&amp;&nbsp;<a href=\"https:\/\/get.allstarcharts.com\/?utm_source=chart-advisor&amp;utm_campaign=fwd_chartadvisor&amp;utm_term=27774019&amp;utm_medium=email\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>All Star Charts<\/strong><\/a><\/strong><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-tuesday-13th-june-2023\">Tuesday, 13th June, 2023<\/h2>\n\n\n\n<p><strong>1\/ New Resistance for S&amp;P 500<\/strong><\/p>\n\n\n\n<p><strong>2\/ Industrials Knock on the Door<\/strong><\/p>\n\n\n\n<p><strong>3\/ USD\/JPY Supports the Nikkei Breakout<\/strong><\/p>\n\n\n\n<p><strong>4\/ Emerging Market Currencies Hit 52-Week Highs<\/strong><\/p>\n\n\n\n<p><em>Investopedia is partnering with All Star Charts on this newsletter, which both sells its research to investors, and may trade or hold positions in securities mentioned herein. The contents of this newsletter are for informational and educational purposes only, however, and do not constitute investing advice.<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-1-new-resistance-for-s-p-500\">1\/ <strong>New Resistance for S&amp;P 500<\/strong><\/h2>\n\n\n\n<p>The S&amp;P 500 Index (<a href=\"https:\/\/www.investopedia.com\/markets\/quote?tvwidgetsymbol=spx&amp;hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=9406775-20230613&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=061323\">SPX<\/a>) left behind the 4,200&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/r\/resistance.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=9406775-20230613&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=061323\">resistance<\/a>&nbsp;zone earlier this month and has been ripping higher ever since.<\/p>\n\n\n\n<p>However, although the price is reaching new 52-week highs, it is challenging a new critical level of overhead supply:<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2023\/06\/1-12-1100x537.png\" alt=\"\" class=\"wp-image-191969 lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/537;\" \/><\/figure>\n\n\n\n<p>This area coincides with August highs from last year and the 61.8%&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/f\/fibonacciretracement.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=9406775-20230613&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=061323\">retracement<\/a>&nbsp;of the 2020-2021 bear cycle, making for a confluence of resistance.<\/p>\n\n\n\n<p>If buyers force a decisive&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/b\/breakout.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=9406775-20230613&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=061323\">breakout<\/a>&nbsp;above this supply zone, it will be a major feather in the hat for stock market bulls.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-2-industrials-knock-on-the-door\">2\/ <strong>Industrials Knock on the Door<\/strong><\/h2>\n\n\n\n<p>When it comes to value-oriented sectors,&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/i\/industrial-goods-sector.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=9406775-20230613&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=061323\">industrials<\/a>&nbsp;call our attention as they reach new 52-week highs\u2014regardless of the&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/m\/marketcapitalization.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=9406775-20230613&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=061323\">market-cap<\/a>&nbsp;scale you look at.<\/p>\n\n\n\n<p>The chart below shows Small Cap Industrials (<a href=\"https:\/\/www.investopedia.com\/markets\/quote?tvwidgetsymbol=psci&amp;hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=9406775-20230613&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=061323\">PSCI<\/a>) pressing against the upper bounds of a multi-year base as buyers try to take out this level and send prices out of the range to new all-time highs. This is something not too many sectors and industry groups can say right now.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2023\/06\/2-10-1100x537.png\" alt=\"\" class=\"wp-image-191970 lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/537;\" \/><\/figure>\n\n\n\n<p>If and when PSCI breaks out of this formation, it wouldn&#8217;t be a surprise to see more and more groups follow suit. After all, all-time highs are characteristic of&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/b\/bullmarket.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=9406775-20230613&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=061323\">bull markets<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-3-usd-jpy-supports-the-nikkei-breakout\">3\/ <strong>USD\/JPY Supports the Nikkei Breakout<\/strong><\/h2>\n\n\n\n<p>A true risk-on event often involves the U.S. dollar (USD) gaining ground against the&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/forex\/j\/jpy-japanese-yen.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=9406775-20230613&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=061323\">Japanese yen (JPY)<\/a>.<\/p>\n\n\n\n<p>That has certainly been the case recently, and the overlay chart of the&nbsp;<a href=\"https:\/\/www.investopedia.com\/articles\/investing\/102114\/how-invest-nikkei-225.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=9406775-20230613&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=061323\">Nikkei 225<\/a>&nbsp;and the USD\/JPY pair tells the story.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2023\/06\/3-10-1100x561.png\" alt=\"\" class=\"wp-image-191971 lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/561;\" \/><\/figure>\n\n\n\n<p>These two markets have a strong tendency to peak and trough together, as the Nikkei and USD\/JPY pair have gained roughly 22% and 8% over the trailing three months, respectively.<\/p>\n\n\n\n<p>So while a weaker dollar likely translates into tailwinds for global&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/r\/risk-asset.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=9406775-20230613&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=061323\">risk assets<\/a>, stock market bulls shouldn\u2019t be alarmed by a rising USD\/JPY pair.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-4-emerging-market-currencies-hit-52-week-highs\">4\/ <strong>Emerging Market Currencies Hit 52-Week Highs<\/strong><\/h2>\n\n\n\n<p>Markets are bracing for tomorrow\u2019s&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/f\/fomc.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=9406775-20230613&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=061323\">Federal Open Market Committee (FOMC)<\/a>&nbsp;decision\u2014including the dollar.<\/p>\n\n\n\n<p>Let\u2019s call it&nbsp;<em>the knee-jerk before the knee-jerk<\/em>, with a little help from today\u2019s May&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/c\/consumerpriceindex.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=9406775-20230613&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=061323\">Consumer Price Index (CPI)<\/a>&nbsp;print. But if we turn to&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/e\/emergingmarketeconomy.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=9406775-20230613&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=061323\">emerging market (EM)<\/a>&nbsp;currencies, we don\u2019t see any sign of hesitation.<\/p>\n\n\n\n<p>Check out our EM Commodity Currency index (equally weighting the Mexican peso, Brazilian real, Chilean peso, and South African rand) posting new 52-week highs after violating a long-term downtrend line at the beginning of the year:<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2023\/06\/4-10-1100x561.png\" alt=\"\" class=\"wp-image-191973 lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/561;\" \/><\/figure>\n\n\n\n<p>EM currencies are showing impressive strength, indicating broadening&nbsp;<a href=\"https:\/\/www.investopedia.com\/terms\/w\/weak-dollar.asp?hid=aa5e4598e1d4db2992003957762d3fdd7abefec8&amp;did=9406775-20230613&amp;utm_campaign=chart-advisor_newsletter&amp;utm_source=investopedia&amp;utm_medium=email&amp;utm_content=061323\">dollar weakness<\/a>. And a weaker dollar bodes well for risk assets\u2014<em>worldwide<\/em>.<\/p>\n\n\n\n<p>We imagine that burgeoning bull market developments could only intensify if the uptrend in EM commodity currencies persists.<\/p>\n\n\n\n<p>&#8212;<\/p>\n\n\n\n<p>Originally posted 13th June 2023<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The S&#038;P 500 Index (SPX) left behind the 4,200\u00a0resistance\u00a0zone earlier this month and has been ripping higher ever since.<\/p>\n","protected":false},"author":186,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21,14,16,18,6,8,9,22,23,26,3],"tags":[314,194,9995,15426,207,186],"contributors-categories":[13686],"class_list":{"0":"post-191968","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-commodities","7":"category-etfs","8":"category-forex","9":"category-macro","10":"category-north-america","11":"category-region","12":"category-securities","13":"category-stocks","14":"category-technical-analysis","15":"category-text-articles","16":"category-traders-insight","17":"tag-fomc","18":"tag-jpy","19":"tag-nikkei-225","20":"tag-psci","21":"tag-spx","22":"tag-usd","23":"contributors-categories-investopedia"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v27.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Chart Advisor: \u00a0S&amp;P 500 Revisits August Highs<\/title>\n<meta name=\"description\" content=\"The S&amp;P 500 Index (SPX) left behind the 4,200\u00a0resistance\u00a0zone earlier this month and has been ripping higher ever since.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.interactivebrokers.com\/campus\/wp-json\/wp\/v2\/posts\/191968\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Chart Advisor: \u00a0S&amp;P 500 Revisits August Highs | IBKR Campus US\" \/>\n<meta property=\"og:description\" content=\"The S&amp;P 500 Index (SPX) left behind the 4,200\u00a0resistance\u00a0zone earlier this month and has been ripping 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