28, July 2016

SP500 (a 4-hour chart)

SP500 (a 4-hour chart)

Current situation

The index seems to have returned to the positive sentiment. The index was falling the whole day, but reversed after the Fed statements. The index grew from the lowest mark at 2152 and closed the day at 2165. 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. RSI is in the neutral territory now.

The trading instrument broke under the 50 and 100 EMAs for a while and returned above the moving averages in the 1 hour chart. The S&P500 broke the 50-EMA in the 4 hours chart. The moving averages direction is upwards.

Trading recommendations

We expect the index to resume its growth. The level 2182 is the buyers’ target.