S&P 500 Index Technical Analysis – S&P 500 Index Trading: 2022-01-25

 S&P 500 Index Technical Analysis – S&P 500 Index Trading: 2022-01-25

S&P 500 Index Technical Analysis.

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S&P 500 Index Technical Analysis Summary

Sell Stop։ Below 4350

Stop Loss: Above 4750

IndicatorSignal
RSINeutral
MACDSell
MA(200)Sell
FractalsSell
Parabolic SARSell
Bollinger BandsSell

S&P 500 Index Chart Analysis

S&P 500 Index Technical Analysis

On the daily timeframe, SP500: D1 has broken down the uptrend support line. A number of technical analysis indicators formed signals for further decline. We do not rule out a bearish movement if SP500: D1 falls below the lower Bollinger band: 4350. This level can be used as an entry point. The initial risk limit is possible above the 200-day moving average line, the last up fractal and the Parabolic signal: 4750. After opening a pending order, we move the stop following the Bollinger and Parabolic signals to the next fractal high. Thus, we change the potential profit/loss ratio in our favor. The most cautious traders after making a trade can switch to a four-hour chart and set a stop loss, moving it in the direction of movement. If the price overcomes the stop level (4750) without activating the order (4350), it is recommended to delete the order: there are internal changes in the market that were not taken into account.

Fundamental Analysis of Indices – S&P 500 Index

Political risks and weak corporate reporting have a negative impact on the US stock market. Will the SP500 quotes continue to decline?

The New York Times published an article pointing to the possibility of an increase in the number of American troops in Eastern Europe due to the political crisis in Ukraine. There is no official confirmation yet, but the reaction of investors was negative. At the start of the 2021 Q4 corporate reporting season, Refinitiv forecast a 22.4% increase in total earnings for S&P 500 stock index companies. In general, among large corporations, so far only Goldman Sachs has published a weak quarterly report. However, investors fear a slowdown in the growth of financial indicators in the future. Market participants were very disappointed with the forecast of online cinema Netflix. Latter expects new subscriptions to reach 2.5 million in Q1 2022, up from 4 million in Q1 2021. Another risk for the stock market may be a more aggressive tightening of the Fed’s monetary policy, which may be announced at the next meeting on January 26.

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