Binary S&P500 seems to be losing steam. The recent positive news are about to be short-lived without any additional support from the European institutions. The binary index is no longer oversold. The binary traders are assessing the upside potential of the binary call options. It is highly possible that the binary index undergo a steep correction.
Binary options on S&P500 have reached a crucial trend line. It is the hurdle between current market levels and new yearly highs. The major resistance is drawn from 1420 points through 1405 points. Currently, the underlying index is just below it at 1377 points. Binary options might break above the aforementioned mark. However, they will most probably experience a downside correction first before gathering strength for a decisive breakout.
The binary index is trading in an upside channel for the last month. The zone between its boundaries is getting tighter as the chart patter approaches the apex. So, the volatility will decrease significantly it a breakout does not occur soon. The 1377 level corresponds to 70.70% of retracement from the wave 1420-1270 points. It is another reason to think that the downward pressure will increase till the end of the week.
Potential targets are 1360 points, followed by 1340 points.
The information in this analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument.