sp 500 daily outlook for thurs 16 july bulls have resurfaced above the 21102102 support 852502015
<p>(Click to enlarge charts) What happened yesterday The US SP 500 Index (proxy for the S&P 500) has staged a setback below the 2114 daily […]</p>
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What happened yesterday
The US SP 500 Index (proxy for the S&P 500) has staged a setback below the 2114 daily pivotal resistance but it did met the expected target of 2097 (only printed a low of 2102 @2am).
Please click on this link for a recap on our previous daily outlook.
Key elements
- This morning’s price action has surpassed the 2114 resistance which implies that any potential setback in the degree/magnitude of a bearish corrective wave 4 has been invalidated.
- Since 10 July 2015 low @4am, the Index has evolved within a short-term ascending channel with upper (resistance) and lower (support) boundaries at 2142 and 2110 respectively.
- The 2128 resistance is the multi-month range-top in place since April 2015 and the 261.8% Fibonacci projection from 09 July 2015 low @2am to 10 July 2015 low @4am (see daily & 4 hour charts).
- The intermediate term RSI oscillator has just broken above its former trendline resistance (in dotted green) which suggests a resurgence of upside momentum (see daily chart).
- The hourly Stochastic oscillator has just exited from its overbought region which indicates that the Index may see the risk of a pull-back in price action.
Key levels
Intermediate support: 2110
Pivot (key support): 2102
Resistance: 2128 & 2142
Next support: 2088/2085
Conclusion
Current technical elements have suggested that the bulls have resurfaced to support the continuation of the medium term (multi-week) upside movement.
Any potential pull-back is likely to be held by the 2110/2102 significant short-term support before the rally resumes to target 2128 and even the next resistance at 2142.
On the other hand, failure to hold above the 2102 daily pivotal support is likely to jeopardise the bullish tone to see a slide to test the next support at 2088/2085 (the former short-term range top now turns pull-back support).
Disclaimer
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