22, June 2016

SP500 (a 4-hour chart)

 SP500 (a 4-hour chart)

General overview

The US stocks slightly rise on Tuesday after the Janet Yellen's speech. Janet Yellen spoke about the state of the US economy. The shares of the energy sector rose by 0.9% amid the oil prices growth (2.9%). Marathon Oil shares rose by 10% when the company announced its plans to acquire PayRock Energy Holdings for 888 million dollars.

Current situation

The index remained in a range between 2086 and 2073. The index showed a mixed dynamics during the day. The SP500 fell to the bottom of the side channel where it turned up and grew to the nearest resistance. The resistance comes in at 2086, the support is at 2070.

MACD is on the centerline. The indicator does not give a clear signal. RSI is in a neutral zone giving no signal. The index stuck between the 200-SMA (support) and the 50-SMA (resistance). The 100-SMA is above the price.

Trading recommendations

The index may growth further. The levels 2086 and 2100 are still our targets. Shall the index break the level 2070 downwards we will see it decreasing to 2055.