S&P 500 after an upside extension the two previous weeks, is now likely to turn lower targeting to the 2600.9 price level. So, the medium-term trend of the index, has reversed to a downtrend upon downward penetration of the tentative uptrend line by the price, which is a bearish trend signal.
The technical indicators confirm the negative momentum, since the RSI is located in the bearish territory and is pointing downwards. Moreover, ADXR is moving above the 20-threshold level and is pointing upwards, meaning that the market starts to trend negatively since +DI is below -DI.
If prices continue to head lower, support should come from the price level of 2600.9, while a further decline would target the support at 2546.8 level, achieved on April 2.
However, an upside movement would shift focus towards the 2942.2 resistance level, which is an all times high, reached on September 17.
Overall, a medium-term weakness is expected for S&P 500, while a bullish view remains in the long-term.
The above references the authors opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.
Petros currently works as a Broker at an investment firm in Cyprus. His experience focuses on teaching of economics at a high school level and on the preparation of technical analysis reports for intra-day, daily and medium-term trends on indices, futures/commodities and FX spots. Petros holds an MSc in Economic Analysis and a BSc in Economics both from the University of Cyprus. Currently, he is an Associate Member of the Society of Technical Analysts (STA) and a Certified Financial Technician (CFTe).