17, June 2016

SP500 (a 4-hour chart)

SP500 (a 4-hour chart)

General overview

The US Bonds market has been falling for five consecutive sessions. The Fed decision to leave its key interest rate unchanged did not support the index. Now the Fed plans a smaller number of rates hikes in 2017 and 2018 and that fact pressured SP500.

Current situation

The index continued its decrease. The index has been falling nearly a week without long stops. SP500 set a new local low at 2050. The resistance comes in at 2086, the support is at 2070.

MACD is in the negative area. The histogram returned to a decrease that is a sell signal. RSI returned to the oversold area it is also a sell signal. The index left the Moving Average far above, it is another sell signal. The area 2040 – 2020 is a strong support on the daily chart.

Trading recommendations

The index may decrease further. It approached the strong support at 2030 where SP500 may bounce upwards. Shall the index break this level downwards we will see its decrease to 1980.