Technical Analysis SP500 : 2020-09-18

IFC Markets

Master Trader
Oct 31, 2012
1,415
4
84
London (Great Britain)
www.ifcmarkets.com
Recommendation for S&P 500 Index: Sell

Sell Stop : Below 3309.83
Stop Loss : Above 3447.19

IndicatorValueSignal
RSINeutral
MACDSell
Donchian ChannelSell
MA(200)Buy
FractalsNeutral
Parabolic SARSell

Chart Analysis
IFC Markets Tech Analysis

On the daily timeframe the SP500: Daily is retreating after hitting all time high in the beginning of September, while still above the 200-day moving average MA(200) which is rising yet. We believe the bearish momentum will continue after the price breaches below the lower boundary of Donchian channel at 3309.83. A level below this can be used as an entry point for placing a pending order to sell. The stop loss can be placed above 3447.19. After placing the order, the stop loss is to be moved every day to the next fractal high, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level (3447.19) without reaching the order (3309.83), we recommend cancelling the order: the market has undergone internal changes which were not taken into account
Fundamental Analysis

US economic recovery slowed in September. Will the SP500 retreat continue?