S&P 500 INDEX--(A TECHNICAL VIEW) 6-4-2015

S&P 500 INDEX

CLOSED AT 2066.96 ON 2.4-2015

The long term up-trend is still intact but it is not looking that good on the technical chart if you compare it with Nasdaq Composite and at present it is running below its short term moving average range which is between 2078---2070 for 6-4-2015(it changes every day with price movement) and it is also within its critical and very important points of 2093.55 & 2058.90, these points are valid for the year 2015.Please note that it has to sustain above these points to remain buoyant but at present it is just shade above 2058.90 which is concerning. The good point is that it is above its long term moving average range of 2047--1995(it changes every day with price movement and now it is moving up) although not reasonably above but still, therefore as long as it holds 2058.90 marks it is ok. Please note that break below 2058.90 mark and then upper band of the long term moving average ie 2047 will threaten the long term up-trend and break below the lower band of the averages ie1995 and then consistently trading below that mark will end the up –trend, therefore it cannot remain below even the upper band of the long term moving average for longer period if up trend has to continue. Kindly keep this thing in back of your mind.

I would like to mention here that it has made all time high of 2119.59 very recently on 25-2-2015 and then it moved down to make bottom at 2039.69 on 11-3-2015 and then moved up again and made a top of 2114.86 but it could not cross the previous top and made almost a double top and started moving down therefore it seems that the top is in the place at least for some time. However if it has to start fresh robust up move again then it has to cross 2119.59 mark and sustain.

In overall technical view it seems that it is range bound now but the bias is slightly on the downside and in coming days it will decide which way to move, therefore it is suggested to respect the above mentioned levels and act accordingly. I would prefer to avoid long calls now and will only try if it moves above 2119.59 and sustain instead,I would  look for a signal to sell.

Kindly note that make your cost your stop loss in favorable  trade and then trail it as the price move up/down to gain maximum profit and avoid losses. Use support and resistance levels as entry, exit, target and trailing stop loss points. DO NOT TRADE WITHOUT STOP LOSS.

Disclaimer:-The view expressed here are solely of the author and he is not at all responsible in any way for the outcome of the trade you enter based on the above view.

Note: Price stated here is of spot market.

Contact me for strategic guidance to enter and exit the trade.