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

     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



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