06, July 2016

SP500 (a 4-hour chart)

SP500 (a 4-hour chart)

General overview

The US indexes fell when the oil futures and the other commodities decreased. There will begin a season of finance reports in the USA soon. According to analysts, the profit of the companies included in the S&P 500 declined by 5.4% in the second quarter.

Current situation

The S&P500 was growing almost the week and stopped its rally at the mark 2100. The price reversed and lost about 0.84% during the trades. The resistance comes in at 2085, the support lies at 2070.

MACD and RSI decreased from the overbought level. Indicators recommend short positions. The index broke the 200-day moving average and approached the 100-EMA. The moving averages (50, 100 and 200) are horizontal on the 4 hour chart.

Trading recommendations

We recommend going short with the first target - 2070. When the price consolidates below the first target it may go to the level 2055.