18, July 2016

SP500 (a 4-hour chart)

SP500 (a 4-hour chart)

Current situation

The index left all-time high and moved below 2150. As we expected the market pulled back a little. The index lost about 0.53% on Friday. The resistance comes in at 2150, the support lies at 2140.

MACD is in the positive area. Its histogram decreased which indicates the buyers’ positions weakening. The indicator still gives a buy signal. RSI left the overbought territory.

The 50-EMA touched the 100-EMA in the 1 hour chart. The moving averages direction is upwards.

Trading recommendations

Technically, the main trend is upwards, however, sellers managed to lead the price from 2160 to 2140. We believe that is a correctional decrease which happened due to the profit-taking. The price may decrease to 2120 (where the 50-EMA lies) to bounce from it upwards.