Review and dynamics
Opening the opening of today’s trading session the index S&P500 has grown again, but not as much as in the past two days after the election of Donald Trump.
The index S&P500 went beyond the decline line of the previous month and is soaring up to the annual highs at the level of 2192.0.
After strong volatility environment on Wednesday caused by the results of the presidential election in the United States, the index has been growing for a few days in a row. On November 9 volatility in the index has reached almost 140 points or 6.8%, and at the end of the trading day of Wednesday the price of the index S&P500 has reached the level of 2162.0.
On the daily, weekly and monthly charts the indicators OsMA and Stochastic give buy signals. However, on the 4 hours chart the indicators suggest possibility of the short-term downward correction.
Today, at the end of the trading week, investors may take profit and close long positions, which will cause the decline in price. In this case, the price may go down as part of the correction to support level of 2138.0 (ЕМА200 on 4-hour chart).
However, as long as the index S&P500 maintains position above support levels of 2102.0 (ЕМА200 on the daily chart) and 2102.0 (Fibonacci 23.6% after the rise since 2016 from the level of 1828.0), positive trend will continue.
In the previous review we supposed that in the case of the rebound from the levels of 2120.0 and 2102.0 the index will go up to the upper limit of the channel is near the level 2185.0.
Now, 3 points till the price reaches the target of 2185.00, which will prove that our forecast has been correct.
It is still advisable to open long positions, even in the case of the rise in the USD.
As an alternative scenario, the price will break down support level of 2138.0 and will continue to decline with the targets of 2123.0 (ЕМА144 on the daily chart), 2110.0 and 2102.0. Breakdown of the level of 2102.0 may trigger further decline to support level of 2050.0 (Fibonacci 38.2, ЕМА200 on the weekly chart) in the new descending channel on the daily chart.
But the “bullish” trend will change only after breakdown of the support level of 007.0 (Fibonacci 50.0%).
Support levels: 2138.0, 2123.0, 2110.0, 2102.0, 2070.0, 2050.0, 2030.0 and 2007.0.
Resistance levels: 2183.0 and 2192.0.
Sell Stop: 2164.0. Stop-Loss: 2175.0. Targets: 2138.0, 2123.0, 2110.0 and 2102.0.
Buy Stop: 2175.0. Stop-Loss: 2164.0. Targets: 2183.0, 2186.0 and 2192.0.
The price has exceeded the decline of the previous month
Downward correction is possible to the level of 2138.0