10, October 2016

S&P500 (a 4-hour chart)

General overview

Wall Street traded lower on Friday following a lightly weaker US Nonfarm Payrolls report. The latest labour data can put the Fed rate hike on hold.

Current situation

 The index remained in sideways with a tendency to grow during the European session on Friday. However, after a disappointing U.S. labour data the index sharply fell below 2150 and tested the level 2140. S&P500 broke the 50 and 100 EMAs in the 4 hours chart. The moving averages are heading lower in the same timeframe. The resistance is seen at 2150, the support is at 2140.

The MACD histogram decreased which indicates the sellers’ strength. RSI moved to the negative territory.

Trading recommendations

A move below 2140 will strengthen sellers who will try to lead the price towards 2130. If the level 2140 holds the index can bounce upwards towards 2165.