26, September 2016

S&P500 (a 4-hour chart)

General overview

The Oil & Gas and Industrials sectors losses weighed on the American stocks on Friday.

Current situation

The index erased its previous gains and retreated from the weekly high at 2172. The price broke the level 2165 on its way down and headed towards 2150.  S&P500 bounced from the 200-EMA and moved downwards. The price broke the 100-EMA and is approaching the 50-EMA in the 4 hours chart. The 200-EMA is neutral, the 50 and 100 EMAs are pointing lower. The resistance is seen at 2165, the support is at 2150.

MACD decreased which indicates the buyers’ positions weakening. RSI bounced from the overbought territory.

Trading recommendations

We are looking for the 2150 support break and then continuation of a fall with a further target at 2140.