2016-11-17 13:41:25

Review and dynamics
Since today’s opening session the index S&P500 has been growing after yesterday's decline caused by the fall of yields of the US government bonds. After the strong rise of the US stock market and the USD after the victory of Donald Trump in the presidential election investors start to take profits in long positions.

Also still not clear how new policy of Trump will impact on the U.S. economy and if monetary policy tightening will be introduced by the US Fed.

Note that the decline in gold has suspended, and gold price consolidated at the level of $1220.00 per ounce.

The index S&P500 is approaching the annual highs near the level of 2192.0 after the 2-week decline. Yesterday, the index S&P500 had reached the highs of 2186.0 and then started to decline.

Our opinion
On the daily, weekly and monthly charts the indicators The OsMA and Stochastic give buy signals. A Stochastic has been in the overbought zone for a week on the daily chart, indicating a strong upward momentum. The price has broken the upper line of the descending channel on the daily chart near the level of 2175.0.

It is likely that the index will continue to rise to the recent summer and annual highs at the level of 2192.0. However, it is possible that the pair will undergo short-term correction to support levels of 2165.0 (highs of October) and 2157.0 (ЕМА200 the 1 hour chart). Breakdown of the support level of 2145.0 (ЕМА200 on 4-hour chart) can trigger a deeper correction to the levels of 2126.0 (ЕМА144 on the daily chart) and 2110.0 (ЕМА200).

Breakout of the level of 102.0 (Fibonacci 23.6% after the rise since February 2016 at the level of 1828.0) may trigger further decline to support level of 2050.0 (Fibonacci 38.2 and ЕМА200 on the weekly chart) as part of the new descending channel on the daily chart.

After breakout of support level of 2007.0 (Fibonacci 50.0%) bullish trend may come to an end.

As long as the index S&P500 remains above support levels of 2110.0 (ЕМА200 on the daily chart) and 2102.0 (Fibonacci 23.6% after the rise since February 2016 at the level of828.0), uptrend in the index will continue.

Support levels: 2165.0, 2157.0, 2145.0, 2138.0, 2126.0, 2110.0, 2102.0, 2070.0 and 2050.0.
Resistance levels: 2186.0 and 2192.0.

Trading tips
Sell Stop: 2170.0. Stop-Loss: 2180.0. Targets: 2165.0, 2157.0, 2145.0, 2138.0, 2126.0, 2110.0 and 2102.0.
Buy Stop: 2180.0. Stop-Loss: 2170.0. Targets: 2183.0, 2186.0 and 2192.0.

Stochastic is in the overbought zone
Stochastic is in the overbought zone

In the short-term ascending channel
In the short-term ascending channel