The upward movement of the SPX is questionable

20.08.2019 / 12:00

Rating:

SPX

Time frame: H4, D1

Technical Analysis: The chart shows that SPX has lost about 250 points since the beginning of the month, recording its largest loss in 2 months. This was caused by a tweet from US President Donald Trump in which he threatened China with new tariffs of 10% (Trump strikes again)

A few days later the SPX recovered 50% of its losses, reaching a strong resistance level of 61.8 Fibonacci. Currently, the price of indices is again at that level, which coincides with 200 EMA, which plays the role of resistance. At the same time, on a daily time frame, the price is again at 50 periodic EMA, which plays a role of resistance. All this proves that this level is strong and can see a fall in price.

Of course, the 200 period SMA (light blue average) should not be neglected either. At this stage it has not been tested after its breakthrough. If the price manages to break through the current level, then it will reach the 200 period from where sellers should activate and push the price downward.

Trader Milko Zashev

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The upward movement of the SPX is questionable

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