07, July 2016

SP500 (a 4-hour chart)

 SP500 (a 4-hour chart)

General overview

The commodity sector showed the most notable selling in the stock market. The industrial group Danaher showed the largest price change (DHR, -21.4%). The company shares fell as the company shared some parts of its business to a new company.

Current situation

The index showed mixed dynamics, the price was decreasing and growing at the yesterday’s trades. However, buyers won that struggle and SP500 was able to grow by 0.30%. The resistance comes in at 2100, the support lies at 2085.

MACD returned to a growth. The indicator will show a buy signal till it stays in the positive area. RSI reversed to a growth which is a buy signal. The price bounced from the 100-EMA and broke the 200-EMA in the 4 hours chart. The price will grow till it stays above the moving averages (50, 100 and 200) in the 4 hours chart.

Trading recommendations

SP500 may continue its recovery. Buyers’ target is the level 2100. In the alternative scenario the instrument will decrease to 2070.