S&P500 Under Pressure

S&P 500: under pressure

 

• Ichimoku Cloud bearish;
• ADX and DI bearish;
• RSI oversold.

 

Compared to the past week’s charts, the intraday technical sentiment became even more bearish for the S&P 500 stock index. It’s not only about the fact that the index value gapped through the previous bottom (horizontal static line) as significant support and resistance levels are usually breached in that way. As a result of the breakout, the distance between the Ichimoku Conversion and Base lines increased, which points to much higher volatility.    

It’s more important for the downtrend that the ADX and DI’s mainline keeps rising, showing a stronger momentum. In other words, sellers gain more power to keep pushing the S&P 500 index lower. Such a robust momentum together with high volatility could be the factors to ignore oversold conditions of the Relative Strength Index, which is more sensitive to short-term fluctuations than two other indicators. Further selling pressure expected.                                                    

 

Pivot points:

R1: 3737.22 (Ichimoku Conversion line);

R2: 3811.29 (static horizontal resistance);

S1: 3500.00 (round-figure support);

S2: 3400.00 (extension).