In the last two weeks the price of S&P500 has retrieved half of the losses since the beginning of the year declining from the level of 2045.0 by over 230 points.
On the daily chart since the beginning of this week the price has traded near strong resistance level of 1935.0 (ЕМА50 and Fibonacci 50%). The indicators OsMA and Stochastic give signals to open short positions.
“Bearish” trend prevails in the stock markets and the price of gold has sharply grown since the beginning of this year, exceeding the level of 1200.00 USD per ounce. Breakout of the level of 1910.0, which is close to the moving average lines ЕМА200, ЕМА144 and ЕМА50 on 4-hour chart and Fibonacci 38.2%, will bring the index back to the downtrend. In case of the other scenario, the price will breakdown resistance level of 1935.0 and go up to 1960.0 (Fibonacci 61.8%) in the uptrend. After breakdown of the level of 2000.0 (ЕМА200 on the daily chart) we can be sure that uptrend will continue in the medium-term.
However, fundamental data shows that short positions will be preferable in the medium-term. Market participant do not expect that the interest rates will be increased in the near future, so their attention is now switched to the meeting of ECB on 10 March. ECB might adopt drastic measures on further easing of QE program in Eurozone. If it happens, European and American indices will go up.
Support levels: 1910.0, 1880.0, 1850.0 and 1828.0.
Resistance levels: 1935.0, 1960.0 and 2000.0.
Sell Stop: 1918.0.
Targets: 1910.0, 1880.0, 1828.0 and 1800.0.
Buy Stop 1946.0.
Targets: 1960.0, 1990.0 and 2000.0.