Since December 2015 the index S&P500 has been in the downtrend. In February, the index fell to the level of 2108.0, which is almost 15%. In the past 4 sessions the index had adjusted, approaching the level of 1935.0 (Fibonacci 38.2% and ЕМА50 on the daily chart). This is a strong resistance level and it is possible that the price will not break it down on the first try. At the same time, the decline is also possible.

On the four-hour chart the indicators OsMA and Stochastic are reversing toward the short positions.

Breakout of support levels of 1915.0 (ЕМА200), 1900.0 (ЕМА144 on the four-hour chart) and 1894.0 (Fibonacci 23.6%) will bring the price of the index S&P500 back into the downtrend.

If the price consolidates above the level of 1935.0, upward correction can continue and in the short-term long positions will be preferable.

In the medium-term, until negative dynamics in the global market do not change, short positions are advisable.

Do not forget about the meeting of ECB in March. If on 10 March ECB adopts measures to continue monetary policy easing, both American and European indices will go up.

Support levels: 1915.0, 1900.0, 1894.0, 1850.0 and 1828.0.
Resistance levels: 1935.0, 1950.0 and 1970.0.

Trading tips

Sell Stop 1918.0.
Stop-Loss 1933.0.
Targets: 1915.0, 1900.0, 1850.0, 1828.0, 1800.0.

Buy Stop 1937.0.
Stop-Loss 1933.0.
Targets: 1950.0, 1970.0, 1990.0, 2004.0.

S&P500: will the correction continue?

S&P500: will the correction continue?

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