27, June 2016

SP500 (a 4-hour chart)

SP500 (a 4-hour chart)

General overview

London decision to leave the EU crippled world markets. The US Futures in the US S&P 500 index fell by 3.60% on the news. The US stock market closed trading on Friday by a drop due to the negative dynamics from the part of the finance, raw materials and technologies sectors.

Current situation

The instrument got under pressure and decreased at the Asian session on Friday. S&P 500 recovered some losses during the day. However when American traders came to the market sales resumed. The resistance comes in at 2025, the support lies at 2012.

MACD moved into the negative area. The indicator decreased that is a sell signal. RSI is near the oversold level. If RSI declined that will be a sell signal. Shall it bounce upwards and the index will recover. The 50-SMA broke the 200-day moving average downwards. The Moving Averages direction is downwards.

Trading recommendations

We assume the downward movement will be continued as the bearish sentiment prevails. The marks 2012 and 2000 are the sellers’ targets.