FernandoHilario

S&P 500 Index - What now?

SPCFD:SPX   S&P 500 Index
After this troubled weeks the SPX hold its fall around the following supports: Moving Average Exponential (200 periods) and the 23.60% Fibonacci retracement . The long term tendency is still a bullish one, since the MME200 is ascendent, and the price is still holding on it.

The future is foggy to say the least, I will not speculate about what was responsible for this drop in the SPX , but one thing is for sure, the economic signals are very deteriorated and the stock market is overvalued. A big Crash is coming, but when? We cannot be certain.

The RSI and MACD gives us no clear indication here.

The price has hold in 2 very strong support levels, MME200 and 23.60% Fibo retracement. The next levels o support in case the SPX drops are:
- 2745 pts (38.2% Fibo retracement)
- 2665 pts (50% Fibo retracement)
- 2585 pts (61.8% Fibo retracement)

In case the price goes up, we have the following resistances:
- 3020 pts (the last top)
- Around 3150 pts (Upper band of the envelope )

What to do?
For now, if you have a healthy allocation strategy playing out, with enough hedge to counter a coming Crash, technically speaking it is a good time to buy more ETFs that follows the SPX .

In the other hand, I do not recommend any speculative trade for the index.

Leave your thoughts bellow.
Do you agree with this analysis?
What are your views for the S&P 500?

Comments

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