S&P 200 (AXJO.NDX)

Short term

S&P 200 has broken the rising trend channel in the short term and reacted strongly down. For the time being, it is difficult to say anything about the future trend direction. The index is testing support at points 7550. This could give a positive reaction, but a downward breakthrough of points 7550 means a negative signal. RSI is below 30 after the falling prices of the past weeks. The index has strong negative momentum and further decline is indicated. However, particularly in big stocks, low RSI may be a sign that the stock is oversold and that there is a chance for a reaction upwards. The index is overall assessed as technically neutral for the short term.

Recommendation one to six weeks: Hold

Medium term

S&P 200 has broken through the floor of a rising trend channel in the medium long term. This indicates a slower rising rate at first, or the start of a more horizontal development. The index is testing support at points 7560. This could give a positive reaction, but a downward breakthrough of points 7560 means a negative signal. The RSI curve shows a falling trend, which could be an early signal of the start of a falling trend for the price as well. The index is overall assessed as technically slightly positive for the medium long term.

Recommendation one to six months: Weak Positive

Long term

S&P 200 is within an approximate horizontal trend channel in the long term, which indicates further development in the same direction. The index has given a positive signal from the rectangle formation by a break up through the resistance at 7372. Further rise to 8050 or more is signaled. The index has marginally broken down through support at points 7600. An established break predicts a further decline. The index is overall assessed as technically neutral for the long term.

Recommendation one to six quarters: Hold