S&P 500 on the Verge of a Breakout

The S&P 500 could be on the verge of a big breakout, technical charts indicate. The index has been stuck within a “symmetrical triangle,” formed by a pattern of rising pivot lows and falling pivot highs. As the upper and lower boundary lines narrow, it is just a matter of time before a big breakout occurs. The S&P 500 gained as much as 0.70% during intraday trading on Monday to come within striking distance of the declining trend line, before retreating to close up 0.50%.  Since “triangles” act as both continuation and reversal patterns, traders need to keep an eye on the direction of breakout. A strong daily close above the 50-day moving average near 2160 could set the stage for record highs with some resistance expected at the August high of 2195.

Gold prices fell in early Tuesday Asian trade after two days of gains, as the US dollar strengthened amid growing speculation the Federal Reserve will move to raise interest rates in December.  Investors are pricing in a 64.00% probability of the Central Bank increasing rates at its December monetary policy meeting, up from 60.00% last week, data from the CME Group's FedWatch tool showed.  The dollar index, which tracks the greenback’s performance against a basket of major currencies, is 0.32% higher on the session at 97.220 after retreating from highest levels reached since late July.  Gold remains highly-sensitive to changes in US interest rates, with an increase lifting the opportunity cost of holding the non-yielding metal, leading to a reduction in its investment appeal.  Gold prices are expected to remain subdued until Wednesday's release of the latest FOMC meeting minutes.