sp 500 eyeing a potential new all time high 1832922016

Daily Outlook, Tues 04 Oct 2016

(Click to enlarge charts)

What happened earlier/yesterday

Yesterday, the U.S. SP 500 Index (proxy for the S&P 500 futures) has shaped a pull-back from last Friday, 30 September 2016 high of 2175 to print a low of 2153 before it staged a minor rebound to end the U.S. session at 2161.

Interestingly, yesterday’s pull-back in price action has managed to stall again right an ascending trending that has been providing support since the 12 September 2016 medium-term swing low of   2108. From a technical analysis perspective, we are maintaining our bullish bias on the S&P 500 and expect it to shape a potential new record high soon as global risk aversion behaviour eases. Please click on this link to review our latest weekly technical outlook/strategy published yesterday, 03 October.

Over at the fundamental front, U.S. manufacturing sector has managed to show a revival of growth after a lacklustre August. The ISM manufacturing PMI data for September recorded a figure of 51.5 above August reading of 49.4 (below 50 indicates contraction). In addition, it also managed to beat market expectations of 50.3.

Key U.S. economic data releases/events for today

• FOMC Member Lacker speech @1205 GMT
• Redbook Index for  week ending 30 Sep @1255 GMT
• U.S. vice presidential debate@2100 EST

Key elements

• The short-term key resistance stands at 2194/2205 which is defined by the upper boundary of a minor ascending range configuration in place since the 12 September 2016 medium-term swing low, a descending trendline in place since the current all-time of 2194 printed on 15 August 2016 and a Fibonacci projection cluster.
• The short-term key support rests at 2154 which is the ascending trendline that has managed to hold all decline in price action since 15 September 2016 minor swing low of 2115.

Key levels (1 to 3 days)

Pivot (key support): 2154

Resistances: 2174, 2194 & 2205

Next support: 2135 (medium-term pivot)

Conclusion

Maintain bullish bias as long as the 2154 short-term pivotal support holds, the Index is likely to shape a potential push up to retest the current all-time high at 2194 and even 2205 next in the first step.

However, a break below 2154 is likely to negate the preferred bullish tone for a slide to test the 2135 medium-term pivotal support.

Charts are from City Index Advantage TraderPro

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