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) Price Chart – Source: Tradingview
    S&P500 (SPX) Price Chart – Source: Tradingview

     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



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