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

Daily Price Outlook

Analyzing the technical aspect of the S&P 500, its current trading position revolves around the 4535 support level. This support is further reinforced by the 23.6% replacement ratio.

However, it is crucial to note that both the relative strength index (RSI) and the moving average convergence and divergence (MACD) indicator indicate overbought conditions, suggesting a high probability of a bearish correction.

Presently, the 23.6% retracement level and the 50-day exponential moving average offer immediate support at 4535. If the price experiences a bearish break below this level, it may encounter the 38.2% or 50% retracement levels at 4506 and 4484, respectively.

On the other hand, a bullish scenario involves a breakthrough above the 4580 resistance level, which could pave the way for the S&P 500 index to target the 468 or 466 resistance levels.

As traders, it is essential to closely monitor the 4535 level as it presents a potential selling opportunity in case of a bearish break, while a sustained support could signal a buying opportunity.

 S&P500 (SPX) - Trade Idea

Entry Price – Buy Limit 4532

Take Profit – 4625

Stop Loss – 4497

Risk to Reward – 1: 2

Profit & Loss Per Standard Lot = +$930/ -$350

Profit & Loss Per Micro Lot = +$93/ -$35