Review and dynamics
Following yesterday’s release of minutes of FOMC meeting, the USD had grown, which put pressure on the stock indices. Since opening of today’s trading day the index S&P500 has been declining. By mid-April the index S&P500 won back all losses sustained since the beginning of this year and reached the highs of 2108.0. After that the price of index had reversed and in early may is started to fall
Following the release yesterday’s release of minutes of FOMC meeting in April, the price has broken support level of 2045.0 (ЕМА50 on the daily chart) иand is moving towards 2023.0 (ЕМА200 on the daily chart). On 4-hour, daily and weekly charts the indicators OsMA and Stochastic suggest to open short positions.
In case of breakdown of support levels of 2013.0 (ЕМА200 on the weekly chart and lower line of the ascending channel on the daily chart), 2000.0 (Fibonacci 61.8% to the decline since December 2015), the price may return to the downtrend.
If the price goes back above resistance level of 2045.0 (ЕМА50 on the daily chart), 2055.0 (ЕМА200 on 4-hour chart) and 2060.0 (ЕМА144) the price may rise in the ascending channel on the daily chart with the upper limit above the level of 2108.0 (highs of 2016).
In the current situation it is advisable to open short positions.
Support levels: 2023.0, 2013.0 and 2000.0.
Resistance levels: 2045.0, 2055.0, 2060.0, 2083.0, 2100.0 and 2108.0.
Sell on the market. Stop-Loss: 2050.0. Targets: 2023.0, 2013.0, 2000.0 and 1970.0.
Buy Stop: 2061.0. Stop-Loss: 2044.0. Targets: 2083.0, 2100.0 and 2108.0.
Breakout of support levels 2060.0 and 2055.0
Decline to support level of 2023.0