sp 500 daily outlook tues 15 mar 2016 potential push up towards 2030 before new downleg occurs 18019
<p>(Click to enlarge charts) What happened yesterday/earlier The U.S. SP 500 Index (proxy for the S&P 500 futures) has continued to push higher into the […]</p>
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What happened yesterday/earlier
The U.S. SP 500 Index (proxy for the S&P 500 futures) has continued to push higher into the 2030/40 risk zone (printed a high of 2024 in yesterday U.S. session.
Click over here for more details as per highlighted in our latest weekly outlook/strategy published yesterday.
Key elements
- The index is now coming close to the risk zone of 2030/40 which is defined by the trendline resistance from 02 December 2015 swing high area, the upper boundary of the bearish “Ascending Wedge” configuration and a Fibonacci cluster.
- The first short-term support to watch will be at 2001 which is the former minor swing highs area of 08 March and 10 March 2016 and close to the lower boundary of the bearish “Ascending Wedge” configuration.
- The hourly (short-term) Stochastic oscillator has dipped onto its extreme oversold level which suggests a potential upturn in price action at this juncture as the current downside momentum is “overstretched”.
Key levels (1 to 3 days)
Intermediate resistance: 2030
Pivot (key resistance): 2040
Support: 2001 & 1970
Next resistance: 2081
Conclusion
The Index may still see a “residual” push up towards the intermediate resistance at 2030 with a maximum limit set at the 2040 pivotal resistance before a potential decline occurs to test 2001 before targeting the 1970 support.
On the flipside, a break above the 2040 pivotal resistance is likely to invalidate the expected bearish scenario to see a continuation of the countertrend rally towards the next resistance at 2081 (the descending trendline that has linked the lower lows of the impending “Double Top” since the current all-time high of 2138 printed in May 2015).
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