04, October 2016

S&P500 (a 4-hour chart)

General overview

Wall Street opened in the red territory on Monday when healthcare and consumer sectors led the shares down.

Current situation

The index decisively traded below the 2165 mark on Monday. The price retreated from last week high and partly erased latest gains during European trade. S&P500 continued moving lower at the beginning of the New York session. The price bounced from the 200-EMA and rolled back towards the 100-EMA. In the 4 hours chart the 100 and 200 EMAs maintained their bearish slope, the 50-EMA pointed higher. The resistance is seen at 2165, the support is at 2150.

MACD decreased which points the buyers’ weakness. RSI remained neutral.

Trading recommendations

Bears seem to have returned in the game. The upward movement is out of steam, sellers shall lead the price towards 2140 through 2150.