09, August 2016

SP500 (a 4-hour chart)

SP500 (a 4-hour chart)

General overview

S&P500 retreated from all-times highs following a drop in healthcare. The drop in healthcare lowered a positive impact of higher oil prices and a strong NFP report.

Current situation

We are still bullish longer-term. However, the index weakened and moved away from all-time high. The resistance is seen at 2180, the support is at 2165.

MACD is in the positive area. The histogram decreased which indicates the buyers’ positions weakening. RSI left the overbought area.

The 50-EMA is crossing the 100-EMA upwards which is a buy signal in the 1 hour chart. The 50-EMA extended its growth and is around 2170 now. The 50, 100 and 200 Day EMAs are trending upwards. The 50 and 100 EMAs are forming a cross-over in the 4 hours chart and act as a support for the instrument.

Trading recommendations

The S&P500 may decrease to the level 2165 where the 50 and 100 EMAs lie. The price may bounce back towards 2180.