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Technical Analysis – S&P 500 index drifts lower

US500 Nov15 | EconAlerts


S&P 500 index (US 500) drifts lower, crosses back below 200-day SMA.

The S&P 500 index fell sharply in recent sessions, crossing decisively back below its 200-day simple moving average (SMA) on November 12, which has turned the near-term bias to negative.

Short-term oscillators support the notion. The RSI is below 50 and pointing lower, detecting accelerating negative momentum. The MACD, already below zero, is currently testing its red trigger line; a move below it would be a bearish signal.

Further declines in the index could stall initially near the 2632 level, defined by the lows of October 30. A downside break may open the way for the 2602 zone, the October 29 trough, before the April 4 bottom of 2560 comes into view.

On the flipside, a recovery could meet resistance around 2714, which capped the declines on November 5 and 12. If the bulls pierce above it, the next barrier may be the 2755 area – note that the 200-day SMA at 2763 is also part of this zone. Another upside break would turn the bias to neutral, perhaps seeing scope for a test of 2818, the November 7 peak.

Overall, both the short-term and medium-term pictures appear negative at the moment.

US500 Nov15 | EconAlerts



 

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Disclaimer:
This information is not considered as investment advice or investment recommendation but instead a marketing communication. This material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.


Source: XM

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