The S&P 500 is nothing more than a stock market index of the 500 largest-cap companies listed on the New York Stock Exchange and NASDAQ. These are mainly American companies. This index is the most well-known indicator managed by the Standard & Poor’s rating agency.

  • Technical analysis of SP500
  • EMA144 average support for the index
  • Wednesday, 20.01 – FED meeting

It would seem that an index calculated on the basis of the shares of the top 500 companies and having so many variables is not the best financial instrument for technical analysis.

However, after analysing charts on a daily and 4-hour interval, I believe that we can risk a statement that in the coming days the value of the index will fall to 4350p

SP500 Daily chart

Standard and Poor's index 2022
SP500 Daily – EMA144 average has been a support and resistance for the index for over 2 years

Analyzing the daily chart we can notice that the exponential average EMA144 has been a dynamic support and resistance line for over 2 years. The index has approached the average again and if it was overcome, it would be a strong signal for declines. On Wednesday 26.01 there will be a meeting of the FED. If the hawkish stance of FED is maintained – it may be an impulse to break the average and fall to 4350.

SP500 – chart H4

SP500 H4 – index fell below the local trend line and is testing the demand zone (brown)

On the H4 chart the index is below the local uptrend line. The value has fallen to the nearest demand zone. It is possible to return to the beaten trend line which will now become resistance. And as I mentioned above, Wednesday’s FED decisions may trigger declines.

The above analysis is based on the PA+MACD strategy, a detailed description of which you can read HERE . I will talk more about the PA+MACD strategy applied to these currency pairs during the live trading sessions which you can attend from Monday to Friday.
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