sp 500 daily outlook tues 12 jan 2016 potential recovery on sight 1792912016
<p>(Click to enlarge charts) Key elements The U.S. SP 500 Index (proxy for the S&P 500) has continued to hover above the key long-term support […]</p>
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Key elements
- The U.S. SP 500 Index (proxy for the S&P 500) has continued to hover above the key long-term support at 1890/80 (click here for more details in our latest weekly strategy/outlook).
- On the shorter-term, there is an intermediate resistance at 1936 (yesterday’s minor swing high which is just above a trendline resistance that has linked up the lower highs of last week’s steep decline) follow by 1970 (also confluences with 38.2% Fibonacci retracement of the whole steep down move since 30 December 2015).
- The hourly (short-term) Stochastic oscillator has started to inch up from its oversold region which suggests a revival in upside momentum.
Key levels (1 to 3 days)
Pivot (key support): 1890/80
Resistance: 1936 & 1970
Next support: 1835/20
Conclusion
As long as the 1890/80 pivotal support holds, the Index is likely to see a recovery towards the 1936 intermediate resistance before targeting 1970 next.
However, a clear break below 1890/80 may jeopardise the long-term bullish trend in place since March 2014 to see a further drop towards the next support at 1835/20 (the range bottom area of 24 August to 29 September 2015).
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