28, October 2016

S&P500 (a 4-hour chart)

General overview

The U.S stocks traded higher during the day and turned lower at the beginning of the New York session. The stocks turned lower despite strong quarterly earnings report in the healthcare and technology sectors.

Current situation

The index trade higher during the Asian and European sessions on Thursday. The benchmark turned lower at the beginning of the NY session. The price broke the level 2140 and set a daily high at 2143 when the price turned down and dropped below the level. After breaking the level S&P500 extended its losses and moved towards 2130. Prices bounced off the 200-EMA, turned around and broke the 100 and 50 EMAs on its way downwards. All moving averages are pointing lower in the 4 hours chart. The resistance is seen at 2140, the support is at 2130.

MACD indicator is at the centerline. If the histogram enters the positive territory, that will indicate buyers’ growing strength. If MACD returns into the negative area the sellers will take control over the market. RSI oscillator is within neutral area.

Trading recommendations

The S&P500 now seems to be heading towards its immediate support near 2130. A solid break below the level will send the market towards 2120.