S&P 500 Technical Analysis | S&P 500 Trading: 2020-02-25 | IFCM UAE
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S&P 500 Technical Analysis - S&P 500 Trading: 2020-02-25

S&P 500 Index Technical Analysis Summary

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Strong SellSellNeutralBuyStrong Buy

Below 3235

Sell Stop

Above 3400

Stop Loss

Mary Wild
Senior Analytical Expert
Articles 2058
IndicatorSignal
RSI Sell
MACD Neutral
MA(200) Neutral
MA(50) Sell
Fractals Sell
Parabolic SAR Sell
Bollinger Bands Sell

S&P 500 Index Chart Analysis

S&P 500 Index Chart Analysis

S&P 500 Index Technical Analysis

On the daily timeframe, SP500: D1 broke down an uptrend support line and a 50-day moving average line. Now it is going down from its historical maximum. A range of technical analysis indicators formed signals for a further decrease. We do not exclude a bearish movement if the SP500 falls below the lower Bollinger line: 3235. This level can be used as an entry point. The initial limitation of the risk is possible below the last upper fractal, historical maximum and the Parabolic signal: 3400. After opening a pending order, we move the stop loss following the Bollinger and Parabolic signals to the next fractal maximum. Thus, we change the potential profit / loss ratio in our favor. After the transaction, the more risk-averse traders can switch to a four-hour chart and set a stop loss, moving it according to the trend. If the price overcomes the stop level (3400) without activating the order (3235), we recommend to close the position: the market sustains internal changes that were not taken into account.

Fundamental Analysis of Indices - S&P 500 Index

The coronavirus epidemic is spreading outside of China. Will the US S&P 500 stock index quotations fall down?

As of February 24, 77.3 thousand people have been infected in China, 2.6 thousand people died. Iran is in second place by number of deaths (12 people). At the same time, the number of patients in Iran is relatively low and amounts 47. In South Korea there are more than 800 patients, 8 people died. In Italy, more than 200 infected and 7 dead. China produces a significant amount of component parts for US companies. Investors fear supply cuts due to the coronavirus epidemic and its subsequent quarantine. In addition, the demand for American goods has decreased markedly. Particularly, smartphone sales decreased by about a third. The China Passenger Car Association reported a 92% drop in car sales in the first 2 weeks of February to 811 units a day.

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Note:
This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.

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