08, November 2016

S&P500 (a 4-hour chart)

General overview

The news that FBI did not find anything criminal in Clinton email use probe supported the market. Besides, oil prices rebound strengthened Oil&Gas sectors.

Current situation

After the night gap the index continued with recovery on Monday. The index was able to negate early losses, climbing towards 2110. After a brief consolidation around the level S&P500 extended its gains and escalated higher in the NY session. Prices tested the 50-EMA in the 4 hours chart. The moving acted as a resistance, slowing down its recovery. The moving averages keep heading lower in the mentioned timeframe. The resistance is seen at 2120, the support is at 2110.

MACD grew which indicates the sellers’ positions weakening. RSI moved upwards, approaching the overbought area.

Trading recommendations

The benchmark needs to break above 2120 to retain its bullishness for further gain to 2130. A daily close below 2110 may slow down the upbeat prospects. Sellers may drive the S&P500 to 2090.