14, July 2016

SP500 (a 4-hour chart)

SP500 (a 4-hour chart)

General overview

The weakened political tensions in Japan and the UK and the hopes that the Central Banks will launch the new stimulus program will support the market.

Current situation

The index is overbought and is in a consolidation phase. The new historical high is at 2140. The instrument is between the current support and the resistance. Yesterday the SP500 lost about 0.10%. The resistance comes in at 2140, the support lies at 2140.

MACD is in the positive area. Its histogram decreased which indicates the buyers’ positions weakening. RSI left the overbought area that also supports sellers.

The 50-EMA crossed the 100 and 200 EMAs upwards which indicated the buyers’ strength.

Trading recommendations

The index S&P 500 may continue the consolidation at the current marks. The potential decrease target is the level of 2120.