04, July 2016

SP500 (a 4-hour chart)

SP500 (a 4-hour chart)

General overview

The stock indices finished the week with a growth by an average of 3%. The stock market received some support from Mark Carney’s statements (the Bank of England Governor). According to Mark Carney the regulator may soften its monetary policy this summer.

Current situation

The index grew and was able to set a new local high at 2100. S&P 500 was able to grow by 1,20% during the course of Friday trades. Now the resistance comes in at 2100, the support lies at 2085.

MACD is in the positive area, its histogram grew, that is a buy signal. RSI is near the overbought area. If RSI declined that will be a sell signal. Shall it move upwards we will get a buy signal. The index broke all moving averages (50, 100 and 200) on the 4 hour chart. All moving averages are below of the S&P 500, that is a buy signal. The price may decrease soon towards the moving averages.

Trading recommendations

The level of 2100 limits the growth of the index. A cut through here will aim at the 2120 level. Alternatively, the SP500 will decrease to 2070.