S&P 500 bound for deeper waters?
|All three longer-term technical timeframes point to further underperformance in the S&P 500.
The monthly timeframe—albeit still technically entrenched within a longer-term uptrend—exhibits scope to continue pressing south until shaking hands with support coming in at 4,102. Connecting with the aforementioned base would also likely witness the monthly chart’s Relative Strength Index (RSI) connect with familiar indicator support between 40.00 and 50.00.
Adding to the bearish vibe, as evident from the weekly timeframe, WTD, the index is down -2.0% and pressing bids at support from 4.177. Clearing the noted base would technically uncover the monthly support level mentioned above at 4,102. In addition, you will recall that the unit recently retested the underside of a breached weekly channel support (almost to the point), taken from the low of 3,491. You will also note that the RSI on the weekly chart is comfortably beneath its 50.00 centreline, indicating negative momentum (average losses exceeding average gains).
Moving over to the daily timeframe, recent price action chalked up a failed bullish morning star candlestick formation. This has led the index further beneath its 200-day simple moving average at 4,239 and sent price tunnelling through neighbouring support at 4,191. Engulfing the aforementioned barrier unearths further downside towards support at 4,104, situated a touch north of the monthly support at 4,102.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.