S&P 500 Index

SPX/USD Daily TA Neutral Bearish

70
SPX/USD Daily neutral with a bearish bias. *FOMC announcement tomorrow; 50 bp rate increase + announced first sale of MBS/treasuries would be short-term bullish, anything more may be short-term bearish*. Recommended ratio: 40% SPX, 60% cash. Price is currently exhibiting bullish divergence (against RSI) while testing $4175 critical support (this is the last major support before $3383). Volume remains moderately high and has closed two consecutive sessions with buyer dominance going into the Fed announcement tomorrow afternoon when it will try to make it three consecutive sessions. Parabolic SAR flips bullish at $4267, this tight margin is mildly bullish at the moment (given the critical support level). RSI is currently trending up and attempting to breakout above 38.06 resistance for the second time in a week (it is at 38.48). Stochastic crossed over bearish in yesterday's session and is currently trending down at 21.75 as it approaches a test of 18.32 support. MACD remains bearish and is currently beginning to form a trough at -76.22 minor support. ADX is currently trending up at 25 as Price is falling, this is mildly bearish. If Price is able to defend support at $4175 (+ the lower trendline of the descending channel from August 2021), then the next likely target will be a test of $4343 minor resistance. However, if it gets rejected here ($4175) and breaks down below the lower trendline of the descending channel from August 2021 ($4121), then it will likely test $3938 minor support. Mental Stop Loss: (two consecutive closes above) $4175.

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.