sp 500 daily outlook tues 06 oct at 19882007 risk zone for a potential decline 1500072015
<p>(Click to enlarge chart) Key elements Yesterday’s rally in price action of the U.S. SP 500 Index (proxy for the S&P 500) has stalled below the […]</p>
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Key elements
- Yesterday’s rally in price action of the U.S. SP 500 Index (proxy for the S&P 500) has stalled below the pull-back resistance (in dotted red) at 1988 which is also a “stone throw” away from the 2007 weekly pivotal resistance (please click on this link for more details as per highlighted in our latest weekly outlook).
- The 1 hour (short-term) Stochastic oscillator has turned up from its oversold region and still has some room left for further upside potential before reaching its extreme overbought level. This observation suggests the risk of a slight push up in price action towards the 1988 pull-back resistance.
- The short-term significant support stands at 1958/1948 which was a zone that acted as a former resistance on two occasions at 23 September 2015 @7pm and 25 September 2015 @9pm now turns pull-back support.
Key levels (1 to 3 days)
Intermediate resistance: 1988
Pivot (key resistance): 2007 (weekly pivot)
Support: 1958/1948
Next resistance: 2040/2050
Conclusion
As long as the 1998/2007 critical resistance zone is not surpassed, the Index may see a drop to target the 1958/1948 support.
On the contrary, a clearance above the 2007 weekly pivotal resistance is likely to invalidate the medium-term (1 to 3 weeks) push down scenario for a further potential rally towards the next resistance at 2040/2050 in the first step.
Disclaimer
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