SP500: high level narrow range finishing

Fundamental analysis:

The S & P 500 index closed down 4.89 points, or 0.12%, at 4140.30 on Monday, August 8; Given the huge cost pressure, it is expected that the profit margin of US stock companies will shrink next year. The best part of the US stock market rally has ended. The recent rebound is a "bear market rally" at a time when worries about economic recession are growing. Inflation has peaked, and the rate of decline may be faster than "the market's current expectations", but it does not bode well for the stock market, because it will reduce operating leverage and put pressure on the company's profits.

S & P SP500 - 4-hour K-line diagram shows:

Technical analysis:

According to the 4-hour chart, the high level maintains a narrow range of consolidation, the Bulls slowly move upward after short-term entanglement and shock, the MACD index maintains consolidation and translation in the Bulls area, and the RSI index hovers at the 50 equilibrium line side;

Long and short turning point: 4139

Pressing position: 4178, 4205

Support position: 4114, 4087

Trading strategy: bullish above 4139, targets 4178 and 4205

Alternative strategy: bearish below 4139, targets 4114 and 4087