20, June 2016

SP500 (a 4-hour chart)

SP500 (a 4-hour chart)

General overview

The US indices started trading on Friday below zero, in particular S&P 500 started with -0.13%. The minor changes before the opening of the US stock markets were due to the uncertainty around the possible results of the British referendum which will take place on 23 June.

Current situation

The index stopped falling and reversed. The SP500 recovered from 2050 and reached the mark 2083. The growth was stopped and the index slightly fell. The resistance comes in at 2086, the support is at 2070.

MACD is in the negative area. The histogram returned to a growth that coincided with the current growth. RSI is in a neutral zone giving no signal. The index broke the 200-SMA and remained on it. The 50-SMA and 100-SMA are above the price.

Trading recommendations

The index may growth further. The next target for this pair is the resistance of 2086. Shall the index break the level 2055 downwards we will see it decreasing to 2040.