S&P 500 Forecast: Bear Flag Breakdown Favors Re-test Of Feb Lows

Loading...
Loading...

S&P 500 index looks set to revisit the $2,530 (February low), the technical charts indicate. As of writing, the S&P 500 contract for difference (CFD) is seen changing hands at $2,720.

Daily chart

Support: $2,647 (March 2 low), $2,616 (200-day MA), $2,558 (ascending 50-week MA), $2,530 (Feb low).

Resistance: $2,736 (50-day MA), $2,802 (March 13 high), $2,886-$2,880 (upper end of the flag), $2,876 (record high).

  • The bear flag or inverted flag breakdown confirmed on March 19 has opened doors for a sell-off to $2,390 (target as per the measured height method).
  • The 5-day moving average (MA) and 10-day MA trending lower - indicate bearish setup. The 50-day MA and 100-day MA have shed bullish bias (topped out).
  • The relative strength index (RSI) is flat-lined, but below 50.00 (biased bearish).

View

  • The index will likely revisit $2,530 over the next 4-5 weeks and may extend the drop further toward $2,390 (target as per the bear flag breakdown).
  • On the higher side, only a close above the 10-day MA would signal bearish invalidation, while a move above $2,802 (March 13 high) would signal a bearish-to-bullish trend change.
Posted In: NewsForexMarketsFXStreet
We simplify the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...