Review and dynamics

This week the index S&P500 started to grow again after the decline last week. Since the beginning of the this week the index has grown by 2.5%, from $2183.0 to $2237.0.

With the opening today’s trading session, the index S&P500 is in a narrow range after yesterday's rapid growth, the same as the other major U.S. stock indexes. Investors prefer not to take any actions before the ECB meeting and the interest rate decision, which will be published at 15:45 (GMT+3).

It is possible that investors will place profit-taking orders. The index S&P500 has exceeded recent annual highs of 2192.0 recorded in August. Yesterday, the index has reached the new local highs at the level of 2240.0.

Our opinion

On daily, weekly and monthly charts the indicators OsMA and Stochastic give buy signals.

The price has broken out the upper line of the descending channels on the daily and weekly charts near the level of 2210.0. Uptrend in the U.S. stock market continues.

However, short-term correction may take place to support levels of 2210.0, 2192.0 (highs of August) and 2180.0 (ЕМА200 on 4-hour chart).

Breakdown of support level of 2180.0 may trigger a deeper correction to the level of 2130.0 (ЕМА144, ЕМА200 on the daily chart).

After breakdown of the level 2102.0 (Fibonacci 23.6% after the rise since February 2016 at the level of1828.0), the pair may continue to decline to support level of 2050.0 (Fibonacci 38.2, ЕМА200 on the weekly chart).

However, as long as the index S&P500 remains above support levels of 2130.0 and 2102.0, uptrend will continue.

Support levels: 2210.0, 2192.0, 2180.0, 2130.0 and 2102.0.

Resistance levels: 2240.0, 2250.0 and 2300.0.

Trading tips

Sell Stop: 2230.0. Stop-Loss: 2240.0. Targets: 2210.0, 2192.0 and 2180.0.

Buy Stop: 2240.0. Stop-Loss: 2230.0. Targets: 2250.0 and 2300.0.

SP-d_2

Breakout of 2210.0

SP-h4_3

Ascending channel in the short-term




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