S&P500 (SPX) Price Analysis and Trade Forecast: Daily Trading Signal

Daily Price Outlook

The primary stock market index is the S&P 500, currently positioned at 4,671.1 points. A thorough analysis of the four-hour timeframe reveals a noteworthy technical perspective for the SPX. This perspective gains significance following its successful breach of the crucial 4,500 level.

In terms of downside potential, should the S&P 500 maintain its position below 4,757.94, there is the possibility of a decline towards the 4,437 level. Examining the longer timeframe, the S&P 500 has already achieved approximately 58.7% of its retracement from the 4,474 level. The presence of the 50-day exponential moving average provides a suggestive context for the continuation of the ongoing downtrend.

Both the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) indicators offer supportive readings, enhancing the probability of sustained downward momentum. Presently, breaking below 4,450 could potentially provide an opportunity to initiate a short position on the S&P 500, with a target set at 4,437 or even lower to the 4,400 level.

S&P500 (SPX) - Trade Idea

Entry Price – Sell Below 4470

Take Profit – 4400

Stop Loss – 4517

Risk to Reward – 1: 1.5

Profit & Loss Per Standard Lot = +$700/ -$470

Profit & Loss Per Micro Lot = +$70/ -$47