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

Daily Price Outlook

On October 6, the S&P500 is trading at a price of 4387, as depicted in the 4-hour chart. Critical price points have emerged in the current landscape. The pivot point for the S&P500 is set at $4359. For those looking at potential barriers, there's immediate resistance at $4443, and following that, we have resistance levels at $4602 and $4686.

On the downside, the S&P500 sees its immediate support at $4203, with subsequent cushions found at $4116 and $3960.

From a technical standpoint, the Relative Strength Index (RSI) for the S&P500 stands at 34.59. This value, being below 50, signifies a bearish sentiment. However, approaching the 30-mark suggests the market could soon be in oversold territory, hinting at a potential trend shift or consolidation.

The current price of the S&P500 aligns closely with its 50-Day Exponential Moving Average (EMA) which is at $4387. This equilibrium suggests a possible turning point or decisive move in the offing.

Chart patterns further indicate a prevailing downward channel, supported by the selling indications from the 50 EMA, signifying potential continuation in the bearish momentum.

In conclusion, while the immediate trend for the S&P500 leans bearish, especially if prices remain below the pivot point of 4359, a break above this level might swing sentiments bullish.

Over the next trading sessions, the trajectory of the S&P500, based on its position relative to the 4359 pivot, could either lean towards the resistance at 4443 or seek the support zone near 4203.

S&P500 (SPX) - Trade Idea 

Entry Price – Buy Limit 4223

Take Profit – 4343

Stop Loss – 4175

Risk to Reward – 1: 2.5

Profit & Loss Per Standard Lot = +$1200/ -$480

Profit & Loss Per Micro Lot = +$120/ -$48