S&P500 (SPX) Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Pivot Point: $5,584.24 is critical; watch for a break above or below.
- 50 EMA: Support at $5,449.29; a break below could signal further declines.
- RSI: Trending lower; potential oversold bounce but caution is advised.
The S&P 500 is currently trading at $5,570.65, reflecting a decline of 0.89% on the day. The index has been under pressure, struggling to maintain momentum above the key pivot point at $5,584.24.
The recent pullback suggests that the bulls are losing steam, and the market may be preparing for a further downward correction. Immediate resistance is noted at $5,699.82, followed by $5,754.94, levels that need to be breached for the index to resume its upward trajectory.
On the downside, the first line of defense for the bulls lies at $5,515.94, with stronger support at $5,441.61 and $5,381.03, which could come into play if selling pressure intensifies.
Technical indicators are painting a cautious picture. The Relative Strength Index (RSI) is edging lower, signaling that the market may be entering oversold territory, which could spark a near-term bounce.
However, the 50-day Exponential Moving Average (EMA) at $5,449.29 is crucial, as it has acted as a significant support level in recent weeks. A close below this EMA could accelerate the downward momentum, pushing the index toward the lower support levels mentioned.
Given the current setup, the S&P 500 appears vulnerable to further declines unless it can reclaim the pivot point at $5,584.24 and move decisively higher.
Traders should monitor the $5,515.94 support closely, as a break below this could open the door to a deeper correction. Conversely, if the index manages to stay above $5,515.94, we might see a consolidation phase before any significant move.
S&P 500 - Trade Ideas
Entry Price – Sell Below 5582
Take Profit – 5460
Stop Loss – 5690
Risk to Reward – 1: 1.3
Profit & Loss Per Standard Lot = +$1220/ -$1080
Profit & Loss Per Mini Lot = +$122/ -$108
S&P500 (SPX) Price Analysis – Aug 23, 2024
Daily Price Outlook
The global market sentiment has shown a bearish trend, as evidenced by the performance of the S&P 500 index. The S&P 500 fell 0.9% to around 5,570.64, hitting an intra-day low of 5,560.95. The index is attempting to limit its losses, with attention turning to an address by Federal Reserve Chair Jerome Powell for more cues on the bank’s plan to cut interest rates.
The S&P 500's decline is driven by concerns over a potential recession due to a cooling labor market and anticipated Fed rate cuts, which have raised fears of slower economic growth impacting corporate earnings. Additionally, ongoing geopolitical tensions, notably the conflict between Israel and Gaza, have further pressured the S&P 500 index.
S&P 500 Faces Pressure from Recession Concerns and Fed Rate Cut Uncertainty
On the US front, the S&P 500 index is facing pressure amid growing expectations that the Federal Reserve may start lowering interest rates at its September meeting. Recent US economic data, including rising Initial Jobless Claims and a downward revision in job numbers, has increased concerns about a potential recession.
The S&P Global PMI indicated a sharp contraction in manufacturing, while the services sector showed unexpected growth, adding to market uncertainty.
Fed Chair Powell’s upcoming speech at the Jackson Hole Symposium is expected to provide more clues about potential rate cuts. Markets are already pricing in a rate reduction, which, combined with recent signs of a cooling economy, is raising fears of a slowdown.
This environment has put additional pressure on the S&P 500, as investors worry about the broader economic impact and potential for lower corporate earnings.
Therefore, the S&P 500 is under pressure due to growing concerns about a potential recession and uncertainty from upcoming Fed rate cuts. Rising jobless claims, a revised downward jobs report, and mixed economic indicators heighten fears of economic slowdown and lower corporate earnings.
Geopolitical Tensions Between Israel and Gaza Impact S&P 500 Index
On the geopolitical front, ongoing tensions between Israel and Gaza are causing significant uncertainty. Recent developments, such as ceasefire talks and intensified conflict resulting in over 40,000 deaths in Gaza, have heightened global risk aversion.
These geopolitical tensions are negatively impacting the S&P 500 index. As investors respond to the increased risk and instability, they may reduce their exposure to equities.
This cautious sentiment and the broader market uncertainty contribute to the downward pressure on the S&P 500, exacerbating existing concerns about economic conditions.
S&P 500 - Technical Analysis
The S&P 500 is currently trading at $5,570.65, reflecting a decline of 0.89% on the day. The index has been under pressure, struggling to maintain momentum above the key pivot point at $5,584.24.
The recent pullback suggests that the bulls are losing steam, and the market may be preparing for a further downward correction. Immediate resistance is noted at $5,699.82, followed by $5,754.94, levels that need to be breached for the index to resume its upward trajectory.
On the downside, the first line of defense for the bulls lies at $5,515.94, with stronger support at $5,441.61 and $5,381.03, which could come into play if selling pressure intensifies.
Technical indicators are painting a cautious picture. The Relative Strength Index (RSI) is edging lower, signaling that the market may be entering oversold territory, which could spark a near-term bounce.
However, the 50-day Exponential Moving Average (EMA) at $5,449.29 is crucial, as it has acted as a significant support level in recent weeks. A close below this EMA could accelerate the downward momentum, pushing the index toward the lower support levels mentioned.
Given the current setup, the S&P 500 appears vulnerable to further declines unless it can reclaim the pivot point at $5,584.24 and move decisively higher.
Traders should monitor the $5,515.94 support closely, as a break below this could open the door to a deeper correction. Conversely, if the index manages to stay above $5,515.94, we might see a consolidation phase before any significant move.
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S&P500 (SPX) Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- S&P 500 targets $5,586 resistance; break above could push it to $5,666.
- RSI at 64, approaching overbought territory; watch for potential corrections.
- Strategy: Buy above $5,510, targeting $5,644, with a stop-loss at $5,440.
The S&P 500 is showing strong upward momentum, currently trading at $5,543.21, up 1.61% for the day.
This surge positions the index above its pivot point at $5,512, suggesting that the bulls are firmly in control.
The next immediate resistance is seen at $5,586, and a break above this level could push the index toward $5,666, with a further target at $5,763.
However, traders should be cautious as the RSI is approaching overbought territory, currently sitting at 64.
The 50-day Exponential Moving Average (EMA) at $5,454 provides a solid support base, reinforcing the current bullish trend.
Immediate support lies at $5,441, with additional safety nets at $5,343 and $5,234. These levels are crucial for maintaining the upward momentum.
If the price dips below $5,441, we might see a short-term correction, but as long as it stays above the $5,454 EMA, the outlook remains positive.
For those looking to enter the market, buying above $5,510 could be a strategic move, targeting a take-profit at $5,644. A stop-loss should be placed at $5,440 to manage downside risk.
The key to watch will be how the index reacts around the $5,586 resistance level, which could determine the sustainability of this bullish run.
S&P 500 - Trade Ideas
Entry Price – Buy Above 5510
Take Profit – 5644
Stop Loss – 5440
Risk to Reward – 1: 1
Profit & Loss Per Standard Lot = +$1340/ -$700
Profit & Loss Per Mini Lot = +$134/ -$70
S&P500 (SPX) Price Analysis – Aug 16, 2024
Daily Price Outlook
During the European trading session, the S&P 500 index has experienced a robust upward trend recently, driven by renewed investor confidence in the U.S. economy.
On Thursday, the index climbed 1.61% to close at 5,543.22, marking its sixth consecutive gain. This rally has pushed the index up by approximately 8% from its intraday low on August 5.
However, the primary reason behind this surge has been stronger-than-expected consumer and labor data.
July's retail sales increased by 1%, far exceeding expectations of a 0.3% rise, while weekly jobless claims fell, indicating a resilient labor market.
These encouraging figures have alleviated recession fears and bolstered market sentiment, contributing to the S&P 500's impressive performance.
Strong Economic Data and Fed Rate Cut Expectations Propel S&P 500 Higher
On the US front, the Federal Reserve's anticipated rate cuts and the subsequent weakening of the US dollar have significantly contributed to the S&P 500's upward momentum.
With inflation pressures easing, the market is now fully expecting a 25 basis point rate cut at the Fed's September meeting.
This has driven a slight decline in US Treasury yields, softening the dollar's recent strength. Additionally, robust economic indicators, such as stronger-than-expected retail sales and a resilient labor market, have bolstered investor confidence.
On the data front, US Retail Sales rose by 1.0% month-over-month in July, rebounding sharply from June's 0.2% decline and surpassing the 0.3% forecast.
Initial Jobless Claims for the week ending August 9 dropped to 227,000, better than the expected 235,000 and lower than the previous week's 234,000.
Meanwhile, the US headline Consumer Price Index (CPI) increased by 2.9% year-over-year in July, down from June’s 3% rise and below expectations.
The Core CPI, excluding food and energy, rose by 3.2% year-over-year, slightly down from 3.3% in June but in line with forecasts.
Therefore, the stronger-than-expected retail sales and resilient job market boosted investor confidence, while easing inflation pressures supported expectations of Fed rate cuts, driving the S&P 500 index higher
Geopolitical Tensions Exert Downward Pressure on S&P 500
On the geopolitical front, the increasing tensions, particularly in the Middle East and the ongoing Russia-Ukraine conflict, have capped gains in the S&P 500.
Recent events, such as the assassination of a Hamas leader and the ongoing violence in Gaza and the West Bank, have heightened market anxieties.
Hence, the heightened geopolitical tensions, including Middle East violence and the Russia-Ukraine conflict, have increased market anxiety, leading investors to seek safer assets, thereby exerting downward pressure on the S&P 500.
S&P 500 - Technical Analysis
The S&P 500 is showing strong upward momentum, currently trading at $5,543.21, up 1.61% for the day.
This surge positions the index above its pivot point at $5,512, suggesting that the bulls are firmly in control.
The next immediate resistance is seen at $5,586, and a break above this level could push the index toward $5,666, with a further target at $5,763.
However, traders should be cautious as the RSI is approaching overbought territory, currently sitting at 64.
The 50-day Exponential Moving Average (EMA) at $5,454 provides a solid support base, reinforcing the current bullish trend.
Immediate support lies at $5,441, with additional safety nets at $5,343 and $5,234. These levels are crucial for maintaining the upward momentum.
If the price dips below $5,441, we might see a short-term correction, but as long as it stays above the $5,454 EMA, the outlook remains positive.
For those looking to enter the market, buying above $5,510 could be a strategic move, targeting a take-profit at $5,644.
A stop-loss should be placed at $5,440 to manage downside risk. The key to watch will be how the index reacts around the $5,586 resistance level, which could determine the sustainability of this bullish run.
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S&P500 (SPX) Price Analysis – Aug 09, 2024
Daily Price Outlook
During the European trading session, the S&P 500 index maintained its upward trend and edged higher to around 4,319.31, marking its strongest performance since November 2022.
This rally was driven by a combination of factors, including upbeat U.S. economic data and investor optimism regarding Federal Reserve policy.
Meanwhile, the recent downturn in the U.S. dollar provided additional support for equity markets.
As the dollar weakened, it reduced the impact of international uncertainties on U.S. companies and boosted the appeal of U.S. assets.
Moreover, the S&P 500's rise was fueled by positive earnings reports from major companies like Eli Lilly, which saw a 9.5% increase in its stock price.
Tech giants such as Nvidia, Broadcom, Meta Platforms, and Apple also contributed to the index's gains, recovering from earlier losses and demonstrating resilience amid market fluctuations.
U.S. Economic Data and Fed Rate Cut Expectations Boost S&P 500
On the U.S. front, previously released economic data played a crucial role in the S&P 500's upward momentum.
The Labor Department reported that initial jobless claims for the week ending August 3 totaled 233,000, lower than the Dow Jones estimate of 240,000.
This decline eased recession fears and bolstered investor confidence in the U.S. labor market's resilience.
In the meantime, the growing expectations that the Federal Reserve might cut interest rates as early as September contributed to positive market sentiment.
The anticipation of a potential rate cut, combined with a weaker U.S. dollar, created a supportive environment for equities.
As investors priced in a 25-basis point rate cut, with speculation of a 50-basis point cut, the S&P 500 benefited from improved market conditions and reduced borrowing costs.
Geopolitical Tensions and Their Mixed Impact on the S&P 500
On the geopolitical front, the increasing tensions in the Middle East have had a mixed impact on the S&P 500 index.
Recent escalations in the Gaza conflict, including new Israeli offensives and rising civilian casualties, have introduced volatility into global markets.
Typically, such geopolitical instability contributes to market uncertainty, leading to risk-off sentiment that can negatively impact equity markets.
However, the S&P 500's recent gains suggest that investors may be prioritizing positive economic indicators and Federal Reserve policy expectations over geopolitical risks.
Meanwhile, the ongoing conflicts and diplomatic efforts, such as ceasefire talks led by Qatar, Egypt, and the U.S., could influence market sentiment in the near term.
If tensions escalate further or result in broader regional instability, they could dampen the current bullish outlook for the S&P 500.
S&P 500 - Technical Analysis
The S&P 500 is trading at $5,319.30, up 2.30% on the day, signaling a robust bullish movement in the market. The 4-hour chart suggests that the index is benefiting from strong upward momentum, having surpassed the pivot point at $5,249.75.
However, with the Relative Strength Index (RSI) at 45, the market is neither overbought nor oversold, indicating that the current rally may still have room to run, but caution is warranted.
Immediate resistance is identified at $5,385.42. A break above this level could lead to further gains, with the next resistance targets at $5,508.57 and $5,665.95.
These levels are critical as they could dictate whether the S&P 500 continues its upward trajectory or faces a potential pullback.
The 50-day Exponential Moving Average (EMA), currently at $5,486.47, suggests that the broader trend remains bullish, though a correction could occur if prices fail to sustain above this average.
On the downside, the immediate support level is at $5,128.77, followed by $5,049.14 and $4,957.26.
These levels will be key for traders watching for any signs of weakness or a potential reversal.
Given the current technical setup, entering a buy position near $5,247 with a take profit target at $5,380 and a stop loss at $5,178 could provide a favorable risk-reward scenario, capitalizing on the continued bullish sentiment.
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S&P500 (SPX) Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- S&P 500 rises 2.30% to $5,319.30, with key resistance at $5,385.42.
- RSI at 45 suggests neutral momentum, with room for further gains or a pullback.
- Buy limit at $5,247 targeting $5,380, with a stop loss set at $5,178.
The S&P 500 is trading at $5,319.30, up 2.30% on the day, signaling a robust bullish movement in the market.
The 4-hour chart suggests that the index is benefiting from strong upward momentum, having surpassed the pivot point at $5,249.75.
However, with the Relative Strength Index (RSI) at 45, the market is neither overbought nor oversold, indicating that the current rally may still have room to run, but caution is warranted.
Immediate resistance is identified at $5,385.42. A break above this level could lead to further gains, with the next resistance targets at $5,508.57 and $5,665.95.
These levels are critical as they could dictate whether the S&P 500 continues its upward trajectory or faces a potential pullback.
The 50-day Exponential Moving Average (EMA), currently at $5,486.47, suggests that the broader trend remains bullish, though a correction could occur if prices fail to sustain above this average.
On the downside, the immediate support level is at $5,128.77, followed by $5,049.14 and $4,957.26.
These levels will be key for traders watching for any signs of weakness or a potential reversal.
Given the current technical setup, entering a buy position near $5,247 with a take profit target at $5,380 and a stop loss at $5,178 could provide a favorable risk-reward scenario, capitalizing on the continued bullish sentiment.
S&P 500 - Trade Ideas
Entry Price – Buy Limit 5247.00
Take Profit – 5380
Stop Loss – 5178
Risk to Reward – 1: 1.9
Profit & Loss Per Standard Lot = +$1330/ -$690
Profit & Loss Per Mini Lot = +$133/ -$69
S&P500 (SPX) Price Analysis – Aug 02, 2024
Daily Price Outlook
S&P 500 (SPX) failed to stop its downward trend and remains under pressure around the 5,446 level, hitting an intraday low of 5,410. This decline is driven by economic uncertainties, dovish Federal Reserve policies, and escalating geopolitical tensions.
Looking ahead, traders are awaiting upcoming US labor market data, including Nonfarm Payrolls (NFP) and Average Hourly Earnings for July.
The official employment data will indicate the current status of the labor market, which will influence market speculation for a potential US Federal Reserve (Fed) rate cut in September.
The US NFP report is expected to show that 175K new jobs were added in July, a decrease from the previous addition of 206K. The Unemployment Rate is expected to remain steady at 4.1%.
US Economic Data and Fed Speculation Intensify S&P 500 Pressure
On the US front, speculation about potential Federal Reserve rate cuts in September has increased pressure on the S&P 500. Recent manufacturing and employment data have heightened concerns about the economy. The ISM Manufacturing PMI dropped to an eight-month low of 46.8 in July, down from 48.5 and falling short of the expected 48.8.
Additionally, US Initial Jobless Claims rose to 249K for the week ending July 26, surpassing both the forecast of 236K and the previous week's 235K.
These data points have heightened risk aversion among investors and affected the S&P 500's performance. The Fed's decision to keep rates unchanged at 5.25%-5.50% in July, along with indications of potential rate cuts due to cooling inflation and a moderating labor market, has contributed to market uncertainty.
If the upcoming Nonfarm Payrolls (NFP) report reveals a lower job addition of 175K for July, compared to the previous 206K, and if the Unemployment Rate holds steady at 4.1%, it could impact the Fed's future rate cut decisions.
Investors will also be closely monitoring the Average Hourly Earnings data, which is expected to show annual wage growth slowing to 3.7% from 3.9%, with a monthly increase of 0.3%. Softer wage growth could reinforce expectations for a Federal Reserve rate cut, while stronger numbers might diminish those prospects.
Middle East Tensions Heighten Instability and Impact S&P 500
On the geopolitical front, tensions in the Middle East have further impacted market sentiment. The assassination of Hamas leader Ismail Haniyeh in Tehran has intensified regional instability. According to The New York Times, Haniyeh was killed after attending the new president's inauguration, with accusations from both Iranian officials and Hamas pointing to Israel.
This escalation has contributed to a risk-off sentiment in global markets, affecting the S&P 500.
S&P 500 - Technical Analysis
The S&P 500 (SPX) index is currently trading at $5,446.69, down 1.37% as investor sentiment shifts amid economic uncertainties and corporate earnings reports. The 4-hour chart reveals that the index is trading below the pivot point of $5,412.99, indicating potential further downside unless key support levels hold.
Immediate support is found at $5,327.98, with subsequent levels at $5,259.24 and $5,190.50. If the index breaches these supports, it may face additional downward pressure.
The immediate resistance stands at $5,502.69, followed by $5,577.16 and $5,665.95. To regain upward momentum, the S&P 500 needs to break through these resistance levels decisively.
The Relative Strength Index (RSI) is currently at 44, indicating that the index is approaching oversold territory. This suggests that while there is bearish sentiment, there might be potential for a rebound if positive economic data or earnings surprises materialize.
The 50-day Exponential Moving Average (EMA) is positioned at $5,530.15, further highlighting the need for a break above immediate resistance to shift the short-term outlook to bullish.
In terms of strategy, buying is recommended above $5,415, with a take-profit target set at $5,500 and a stop-loss at $5,350. This approach allows traders to capitalize on potential rebounds while managing downside risks.
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S&P500 (SPX) Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- S&P 500 declines 1.37% to $5,446.69 amid economic uncertainties and earnings season pressures.
- RSI at 44 suggests approaching oversold conditions; potential for rebound if positive catalysts emerge.
- Buy above $5,415; target take-profit at $5,500, with a stop-loss at $5,350.
The S&P 500 (SPX) index is currently trading at $5,446.69, down 1.37% as investor sentiment shifts amid economic uncertainties and corporate earnings reports.
The 4-hour chart reveals that the index is trading below the pivot point of $5,412.99, indicating potential further downside unless key support levels hold.
Immediate support is found at $5,327.98, with subsequent levels at $5,259.24 and $5,190.50. If the index breaches these supports, it may face additional downward pressure.
The immediate resistance stands at $5,502.69, followed by $5,577.16 and $5,665.95. To regain upward momentum, the S&P 500 needs to break through these resistance levels decisively.
The Relative Strength Index (RSI) is currently at 44, indicating that the index is approaching oversold territory. This suggests that while there is bearish sentiment, there might be potential for a rebound if positive economic data or earnings surprises materialize.
The 50-day Exponential Moving Average (EMA) is positioned at $5,530.15, further highlighting the need for a break above immediate resistance to shift the short-term outlook to bullish.
In terms of strategy, buying is recommended above $5,415, with a take-profit target set at $5,500 and a stop-loss at $5,350. This approach allows traders to capitalize on potential rebounds while managing downside risks.
S&P 500 - Trade Ideas
Entry Price – Buy Above 5415
Take Profit – 5500
Stop Loss – 5350
Risk to Reward – 1: 1.3
Profit & Loss Per Standard Lot = +$850/ -$650
Profit & Loss Per Mini Lot = +$85/ -$65
S&P500 (SPX) Price Analysis – July 26, 2024
Daily Price Outlook
The global market sentiment has lost momentum, with the S&P 500 index trading around 5,399.22 and hitting an intra-day low of 5,390.95. This decline stems from disappointing earnings reports from major tech companies like Alphabet and Tesla, which triggered widespread market sell-offs.
Meanwhile, the weak U.S. manufacturing data and lower-than-expected new home sales have heightened investor concerns, heightening the market's negative reaction.
Besides this, the economic slowdown in China, highlighted by disappointing GDP growth and an unexpected rate cut by the People's Bank of China (PBoC), has further pressured U.S. stocks as reduced business investment and consumer spending in China have added to market uncertainties.
Investor caution has also been influenced by upcoming U.S. core PCE data, contributing to increased volatility.
China's Economic Slowdown and Its Impact on the S&P 500 Index
On the China front, the Third Plenum's lackluster outcome, weaker-than-expected Q2 GDP growth, and an unexpected rate cut by the People’s Bank of China (PBoC) have signaled a slowdown in the world's second-largest economy, raising concerns about business investment and consumer spending.
Meanwhile, the PBoC cut its one-year policy loan rate by 20 basis points to 2.3%, the largest reduction since April 2020, after also lowering a key short-term rate. This move aims to support the slowing economy, with silver, a metal used in industries like renewable energy and electric vehicles, potentially being impacted by these economic shifts.
These developments in China have weighed heavily on the S&P 500 index, amplifying investor concerns about global economic stability.
The slowdown in China's economy and reduced business investment and consumer spending have increased market uncertainty, contributing to the index's recent declines and overall market volatility.
Impact of Core PCE Data and Fed Rate Cut Expectations on the S&P 500 Index
On the US front, Investor uncertainty has impacted the S&P 500 index as they await the core Personal Consumption Expenditure (PCE) price index data for May. The PCE, a crucial inflation gauge for the Federal Reserve, is projected to show a year-on-year decrease to 2.5% from 2.8%, with a monthly growth rate of 0.1%.
This data will influence expectations for potential Fed rate cuts, which are anticipated to begin in September.
Despite the US dollar facing challenges due to these rate-cut expectations, strong economic indicators, such as 2.8% GDP growth and lower unemployment claims, have mitigated market losses. However, lower inflation continues to pose a challenge to the dollar's strength.
Therefore, investor uncertainty ahead of the core PCE price index data for May has impacted the S&P 500 index. Meanwhile, the expectations of a Fed rate cut in September, combined with strong economic data, have limited market losses despite ongoing inflation concerns.
S&P 500 - Technical Analysis
The S&P 500 (SPX) is currently trading at $5399.23, marking a decline of 0.51%. The 4-hour chart highlights critical levels and indicators that shape the current market sentiment and potential future movements. The pivot point is set at $5429.65, serving as a key reference for traders.
On the upside, immediate resistance is noted at $5502.69, followed by $5577.16 and $5665.95. These resistance levels will be crucial for any bullish attempts to recover recent losses.
Conversely, immediate support is found at $5327.98, with further support levels at $5259.24 and $5190.50, which could be pivotal for any further downward pressure.
The Relative Strength Index (RSI) is currently at 33, indicating that the S&P 500 is approaching oversold territory. This suggests the possibility of a short-term rebound or consolidation before any significant directional move.
The 50-day Exponential Moving Average (EMA) is positioned at $5529.94, indicating that the current price is below this average, reinforcing a bearish sentiment. The 50 EMA often serves as a benchmark for medium-term trends and could act as a resistance level if the price attempts to rise.
In conclusion, the technical outlook for the S&P 500 remains bearish below the $5429.65 pivot point. Traders are advised to consider entry points for selling below $5430, with a take profit target of $5325 and a stop loss at $5500.
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S&P500 (SPX) Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- The S&P 500 is trading at $5399.23, down 0.51%, with the pivot point at $5429.65.
- RSI at 33 suggests the index is nearing oversold territory, potentially signaling a rebound.
- The 50-day EMA at $5529.94 indicates a bearish trend, reinforcing resistance above current prices.
The S&P 500 (SPX) is currently trading at $5399.23, marking a decline of 0.51%. The 4-hour chart highlights critical levels and indicators that shape the current market sentiment and potential future movements. The pivot point is set at $5429.65, serving as a key reference for traders.
On the upside, immediate resistance is noted at $5502.69, followed by $5577.16 and $5665.95. These resistance levels will be crucial for any bullish attempts to recover recent losses.
Conversely, immediate support is found at $5327.98, with further support levels at $5259.24 and $5190.50, which could be pivotal for any further downward pressure.
The Relative Strength Index (RSI) is currently at 33, indicating that the S&P 500 is approaching oversold territory. This suggests the possibility of a short-term rebound or consolidation before any significant directional move.
The 50-day Exponential Moving Average (EMA) is positioned at $5529.94, indicating that the current price is below this average, reinforcing a bearish sentiment. The 50 EMA often serves as a benchmark for medium-term trends and could act as a resistance level if the price attempts to rise.
In conclusion, the technical outlook for the S&P 500 remains bearish below the $5429.65 pivot point. Traders are advised to consider entry points for selling below $5430, with a take profit target of $5325 and a stop loss at $5500.
S&P 500 - Trade Ideas
Entry Price – Sell Below 5430
Take Profit – 5325
Stop Loss – 5500
Risk to Reward – 1: 5
Profit & Loss Per Standard Lot = +$1050/ -$7000
Profit & Loss Per Mini Lot = +$105/ -$700