26, July 2016

SP500 (a 4-hour chart)

SP500 (a 4-hour chart)

General overview

All ten of S&P500 components went into the red territory. The energy companies were the leaders of the decrease.

Current situation

The tone became negative in the market. Bears are gradually gaining more overall control. The index decreased and lost about 0.36% by the end of the trades. The resistance is seen at 2165, the support is at 2150.

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

The index broke downwards the 50, 100 and 200 EMAs in the 1 hours chart. After the break the instrument reversed some losses and returned to the 200-EMA. The moving averages are turning down.

The price fell and stopped at the 50-EMA in the 4 hours chart. The moving averages (50, 100 and 200) direction is still upwards.

Trading recommendations

We expect the 2150 line break that will open the way for the sellers to 2140.