SPX500 1W Chart Analysis, August 21, 2023
The SPX500 benchmark has fallen recently as fears about FED policy surge. As the minutes after the FOMC meeting indicated, inflation in the US may remain stubborn. This may mean further interest rate hikes.
The 6-month uptrend line was severely breached on August 15. The weekly candle confirmed the declines and closed below the trend line, near the 0.236 Fibo retracement ($4347). So far, this level remains as support for the price. However, the intersection of the averages in the MACD indicator is a warning about the possibility of a downward trend reversal. Another bearish signal is the intersection of the EMA9 from above by the price. Candles have closed above this average every time since late March this year.
In case of a trend reversal, the levels to watch are Fibo 0.382 ($4183) and 0.5 ($4051).
SPX500 1D Chart Analysis, August 21, 2023
SPX500 trend reversal on 1D interval.
As indicated by the 1D chart, the decline was already announced by the price, which broke the EMA9 from above in early August. It was similar to the crossing of the MACD indicator averages. Additionally, on August 16th, MA9 and MA50 formed a death cross, confirming the trend reversal.
On the other hand, RSI reaching oversold levels may herald an upcoming rebound. It can reach either the level of EMA50 ($4440) or the trend line ($4490).
