S&P500 (SPX) Price Analysis and Trade Forecast: Daily Trading Signal

Daily Price Outlook

Taking a look at the technical side of the S&P 500, it is currently trading around the 4535 support level. This particular support divergence is being extended by the 23.6% replacement ratio.

However, upon examining the relative strength index (RSI) and moving average convergence and divergence (MACD) indicator, both of them are showing overbought conditions, suggesting that the chances of a bearish correction remain strong.

At the moment, the 23.6% retracement level, as well as the 50-day exponential moving average, are providing immediate support around 4535. In the event of a bearish break below this level, the SPX price is likely to be exposed to the 38.2% or 50% retracement levels, which are at 4506 and 4484 respectively.

An alternative scenario is a bullish break above the 4580 resistance level, which would likely expose the S&P 500 index towards the 468 or 466 resistance levels.

Therefore, we should monitor the 4535 level closely, as a bearish break below this support could present a selling opportunity. On the other hand, if the support holds, we can also consider a buying opportunity.

 S&P500 (SPX) - Trade Idea

Entry Price – Sell Stop 4524

Take Profit – 4483

Stop Loss – 4563

Risk to Reward – 1: 2

Profit & Loss Per Standard Lot = +$410/ -$390

Profit & Loss Per Micro Lot= +$41/ -$39