SPX500 Support Holding with Positive Momentum Developing

  • SPX500

Weekly SPX500 Analysis

1. The SPX500 has charted a lower peak followed by a lower trough.
2. This suggests weakness and does give us pause for concern.
3. However, there is a potential positivity developing.
4. The black 30-week EMA has held as support and has turned up.
5. We also note that the weekly RSI has hinged and is heading towards a bullish cross of 50 (green rectangle).
6. A positive crossover combined with the SPX500 price candles pushing above the green downsloping green trendline will be bullish developments.

Daily SPX500 Analysis

1. The daily chart already shows a buildup of positive momentum.
2. The SPX500's green 5-day EMA has crossed above its orange 10-day EMA (black ellipse).
3. The EMAs are trend-following and have developed angle and separation to the upside.
4. The daily RSI has crossed above 50 (green rectangle).
5. This is the bullish side of the indicator.
6. If the EMAs hold shape and the RSI remains above 50, a bullish underlying momentum will be present, and the SPX500 candles will continue towards the green downsloping trendline.

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Russell Shor

Senior Market Specialist

Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.

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