22, July 2016

SP500 (a 4-hour chart)

 SP500 (a 4-hour chart)

Current situation

Technically, a bullish tone persists in the market, however, the index had a negative day on Thursdays. The S&P500 left its daily high at 2169 and fell by 0.42%. The resistance is at 2165, the support is seen at 2150.

MACD is in the positive territory. Its histogram decreased which indicates the buyers’ positions weakening. RSI left the overbought area which is a sell signal.

The price is approaching the bullish 50-EMA in the 4 hours chart. The moving averages (50, 100 and 200) direction is upwards. The SP500 broke the 50 and 100 EMAs in the 1 hour chart and is approaching the 200-EMA.

Trading recommendations

We still believe in a growth. The price is overbought and we expect a short-term pull back. Now we are waiting for a bullish signal to buy the S&P500.