As we noted in our Fundamental Analysis today, S&P 500 futures have been declining since the beginning of this month and the opening of today's trading day.
Having broken through the important support level of 4455.0 (EMA 200 on the 4-hour chart, EMA 144, EMA 50 on the daily chart), S&P 500 futures attempt to break through the key support level of 4408.00 (EMA 200 on the daily chart).
A breakdown of the important support level of 4365.00 (EMA 50 on the weekly chart) may signal an increase in the downward dynamics of the S&P 500, increasing the risks of moving into a long-term bear market. However, this is still only a purely theoretical assumption. Anyway, the American stock market maintains a long-term bullish trend. A return to the zone above the level of 4465.00 will be a signal for the resumption of long positions.
Despite the decline, this is our main scenario.
In an alternative scenario, and after the breakdown of the support level of 4365.00, the decline of the S&P 500 will continue towards the recent local lows of 4160.00. A deeper correction will be accompanied by a decline inside the descending channel on the weekly chart. Its lower limit is near the 3900.00 mark. Nevertheless, above the key support levels of 3845.00 (EMA 144 on the weekly chart), and 3610.00 (EMA 200 on the weekly chart), the S&P 500 remains in the long-term bull market zone.
Above the resistance level of 4455.00, long positions will again be preferred.
Support levels: 4365.00, 4278.00, 4160.00, 3900.00, 3845.00, 3610.00
Resistance levels: 4408.00, 4455.00, 4540.00, 4630.00, 4810.00
Trading recommendations
Sell Stop 4355.0. Stop-Loss 4415.0. Goals 4300.0, 4278.00, 4160.00, 3900.00, 3845.00, 3610.00
Buy Stop 4415.0. Stop-Loss 4355.0. Goals 4455.00, 4540.00, 4630.00, 4810.00, 4900.0, 5000.0