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

Daily Price Outlook

- S&P 500 climbs to 4,746.76, facing resistance at $4,685 and $4,772, indicating a potential upward trend.

- RSI at 65 suggests bullish sentiment, but MACD at -2.87 signals possible bearish pressure.

- Bearish engulfing pattern below $4,750 hints at a potential downtrend, with a cautious outlook below $4,775.

On December 22, the S&P 500 Index exhibited a notable surge, rising by 1.03% to 4,746.76. This upward trajectory indicates a renewed vigor in the market, as the index surpasses its pivot point at $4,632. Looking ahead, the S&P 500 faces immediate resistance at $4,685, followed by further barriers at $4,772 and $4,826. On the downside, support levels are established at $4,545, $4,489, and $4,435, which will be crucial in the event of any retracement.

The technical indicators paint a complex picture for the S&P 500. The Relative Strength Index (RSI) stands at 65, hovering near the upper threshold of bullish sentiment but not yet indicating overbought conditions. This suggests that there is still some room for upward movement. However, the Moving Average Convergence Divergence (MACD) presents a contrasting scenario with a value of -2.87 against a signal of 45.17, hinting at potential bearish pressure.

Furthermore, the index's price action remains above the 50-Day Exponential Moving Average (EMA) of $4,731, typically a sign of a bullish short-term trend. Despite this, a bearish engulfing pattern observed on the daily timeframe, particularly below the $4,750 level, suggests a potential downtrend in the S&P 500.

Given these mixed signals, the overall outlook for the S&P 500 appears cautiously bearish, especially if it remains below the critical $4,775 level. In the short term, investors and traders should anticipate the index testing its immediate resistance levels. A successful breach of these could indicate a shift towards bullish momentum. Conversely, failure to overcome these levels might lead to a pullback towards lower support zones.

S&P500 (SPX) - Trade Idea 

Entry Price – Sell Below 4752

Take Profit – 4670

Stop Loss – 4810

Risk to Reward – 1: 1.4

Profit & Loss Per Standard Lot = +$820/ -$580

Profit & Loss Per Mini Lot = +$82/ -$58 (edited)