sp 500 daily outlook for fri 26 june potential short term rebound above 2097 support 756872015
<p>(Click to enlarge charts) What happened yesterday The US SP 500 Index (proxy for the S&P 500) has staged the expected rebound towards the 2117/2120 […]</p>
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What happened yesterday
The US SP 500 Index (proxy for the S&P 500) has staged the expected rebound towards the 2117/2120 resistance before a downside movement occurred towards the expected target at 2101.
Please click on this link for a recap on our previous daily outlook.
Key elements
- The Index is now just above the pull-back support of the former trendline resistance joining the highs since 19 May 2015 (in pink) now at 2097 (see daily chart).
- Based on the Elliot Wave Principal, the Index has traced out a five wave downside movement from 22 June 2015 high (labelled as i*, ii*,iii*,iv* & v*) with the extended 5th wave target at 2097 derived from the 1.00 Fibonacci projection from 22 June 2015 high to 25 June 2015 high (see 1 hour chart).
- The 2097 pull-back support confluences with the 5th wave target (as per mentioned above) which suggests that a potential corrective (short-term) rebound is round the corner for the Index.
- The hourly RSI oscillator has just exited from its oversold region (see 1 hour chart).
- The short-term trendline resistance (in red) joining the highs since 22 June 2015 is now at 2116 which confluences with the 50% Fibonacci retracement of the recent decline from 22 June 2015 high to the current 26 June 2015 low.
Key levels
Pivot (key support): 2097
Resistance: 2116 & 2120
Next support: 2071
Conclusion
Short-term technical elements suggest that the Index is likely to shape a corrective (short-term) rebound after the recent decline seen from the 22 June 2015 high. As long as the 2097 daily pivotal support holds, the Index may see a potential push up to target the 2116 resistance and even 2120 next.
On the other hand, a break below 2097 is likely to invalidate the short-term rebound scenario to see the continuation of the medium term bearish movement to target 2071 next.
Disclaimer
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