Daily Price Outlook
- S&P 500 faces resistance around 4450, leading to a consolidation phase.
- Potential scenario includes a decline towards support at 4339, significant due to its past role.
- Breach of 4450 could encounter resistance at 4525, aiming for 4600, while bearish indicators persist.
Examining the technical aspects of the S&P 500, it's evident that the index has encountered resistance around the 4450 level, leading to a consolidative phase. Looking ahead, the potential scenario for the S&P 500 involves a potential decline towards the next support level at 4339. This level gains significance from its previous role as support on August 18th.
Should the S&P 500 breach the aforementioned support, the subsequent support level is anticipated at 4460, followed by a deeper support around 4170. On the flip side, if the S&P 500 manages to overcome the 4450 level, it would likely encounter immediate resistance around 4525, with further resistance extending beyond that, targeting the 4600 level.
Simultaneously, observing the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicators, both indicators are situated within the sell zone. This, in conjunction with the 50-day Exponential Moving Average (EMA) also residing in the sell zone, suggests that the bearish momentum remains robust.
Given this analysis, it's prudent to focus on the 4450 level. A break below this level could trigger selling positions, particularly considering the significant distance from this point. Additionally, keeping an eye on the psychological resistance level of 4400 is recommended, as breaching this level could potentially push the S&P 500 further downwards, targeting the 4339 level. Further developments should be closely monitored, especially if a break below 4339 occurs, as this could lead to a subsequent target of 4265.
S&P500 (SPX) - Trade Idea
Entry Price – Sell Below 4403
Take Profit – 4336
Stop Loss – 4468
Risk to Reward – 1: 1
Profit & Loss Per Standard Lot = +$670/ -$650
Profit & Loss Per Micro Lot = +$67/ -$65
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