A TECHNICAL UPDATE ON S&P 500 INDEX –20.6.2021

 

S&P 500 INDEX

Open---4204.78---High---4204.78---Low---4164.40---Close---4166.45---on 18.6.2021.

Support:4136.15/4128.43/4118.38/4056.88/3983.87/3950.43/3886.75/3853.50/3805/3789.54/3749.62/3723.34/3694.12/3662.71/3633.40/3588.11/3544.82/3405.73.

Resistance:4167.50/4191.31/4208.41/4218.78/4238.04/4257.16/4287.32/4307/4350/4531.

(Bold and underlined figures are most important)

It has been falling for the last four days and moving down it has decisively broken its major rising trend line on 18.6.2021 drawn from the bottom of 2191.86 made on 23.3.2020, which is an extremely weak sign. Furthermore falling down it has broken some of  its short and medium term moving averages also and some important technical indicators are giving potential indication that it may further move down from here with intermittent short relief rallies in coming days, provided it does not bounce back sharply in the short period of time.

It is already into very short correction mode and to come out of it, it has to move above 4210 and sustain on the closing basis to resume the up move again, but if it continues to move down then its critical support point would be at 4136.15---4124.38---4009.90---3756.07---3405.73 levels. Please note that sustained break below 4124.38 on the closing basis will push it into deep short term correction mode, sustained break below 4009.90 on the closing basis will push it into medium term correction mode, sustained break below 3756.07 on the closing basis will push it into long term correction mode and will potentially threaten the uptrend and most importantly sustained break below 3405.73 on the closing basis will get it into bear market.

The long term technical setup is still looks o.k. as of now, but the short and medium term outlook is slightly weak now and if it does not bounce back sharply and move above 4210 and sustain on the closing basis then it could continue the down move and may seek lower levels in coming days. It is therefore suggested to be cautious in the long trade from now on.

NOTE: - It is a technical assessment of the indices as of now, the technical interpretation changes with the price movement and time; therefore it needs periodic updating, which may please be noted.

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.

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.

Note: Price stated here are of spot market.

Contact me for strategic guidance to enter and exit trade.

 Thanks 

Narendra Kumar Surana

suranank@gmail.com

Mobile—8240951127/9831313654.