XM Group - Analytics

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    Technical Analysis – US-500 index futures looking bearish below cloud

    The US-500 index futures hit a near 2-year low of 1803.90 last week to break below the ‘Black Monday’ low of 1830.40 from August 2015. The index has fallen by about 8% so far this year. It has since bounced back to test the 1900 level today. Near term indicators are pointing to a slight upside bias with RSI attempting to climb towards 50 and the stochastics are holding above 50.

    In the medium term, the outlook appears increasingly bearish as prices have declined further below the Ichimoku cloud and the moving averages.

    Any fresh downside pressure could drive the index below the January 20 low of 1803.90, increasing the bearish bias. On the upside, immediate resistance could come around 1920. But for a more decisive move upwards that could weaken or reverse the bearish bias, the 1985 level should be eyed, which has acted as a previous resistance level and is within reach of the 50-day moving average.

    Risk Warning: Forex, Commodities, Options and CFDs (OTC Trading) are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone. Please ensure that you fully understand the risks involved and do not invest money you cannot afford to lose. Please refer to our full Risk Disclosure.

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