14, October 2016

S&P500 (a 4-hour chart)

 General overview

Wall Street opened lower on Thursday. Investors digested the weak Chinese data and prepared for the US releases and Crude Oil Stocks report.

Current situation

S&P500 had a negative day on Thursday. The price made a good break lower. Sellers dragged the price from the level 2130 towards the mark 2110 (the daily low). The price broke the level 2120 on its way down. The downward momentum faded at 2110, the price grew back to 2120, reversing some of its losses. The 50, 100 and 200 EMAs are heading lower, around the 2150 region. The 50-EMA is crossing the 100-EMA downwards. The resistance is seen at 2120, the support is at 2107.

MACD is in the negative area. The MACD histogram decreased which indicates the sellers’ strength. RSI is within the oversold area.

Trading recommendations

If the price closes below 2120 the index can extend its losses towards 2107. If the level 2120 holds the prices may recover back towards 2130.