22, November 2016

S&P500 (a 4-hour chart)

General overview

Wall Street opened in a flat, awaiting for (Fed) vice chair Stanley Fischer's remarks.

Current situation

The index preserved its short term bid tone on Monday. The price traded in a tight range a few pips above 2180. S&P500 traded above the moving averages in the 4 hours chart. The 50-EMA accelerated its growth while the 100 and 200 EMAs presented a modestly bullish slope. The resistance is seen at 2200, the support is at 2180.

MACD decreased which indicates the buyers’ positions weakening. The RSI indicator has lost upward strength consolidating within overbought levels.

Trading recommendations

The upward trajectory lacked momentum. Traders seem to be unable to climb higher. We expect a move lower. A firm break below 2180 handle could trigger fresh weakness for attack at 2160.