sp 500 weekly outlook for 18 may to 22 may push up towards ascending wedge top at 21402150 626482015
<p>(Click to enlarge charts) What happened last week The U.S. SP 500 Index (proxy for the S&P 500) has pull-backed above the 2085 […]</p>
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What happened last week
The U.S. SP 500 Index (proxy for the S&P 500) has pull-backed above the 2085 weekly pivotal support before staging a rally as expected.
Please click on this link for a recap on our previous weekly outlook.
Key elements
- The Index continues to evolve within a bearish “Ascending Wedge” configuration in place since late December 2014 with upper and lower boundaries (in dark blue) now at 2140/2150 and 2090 respectively (see daily & 4 hour charts).
- The 2090 support (lower boundary of the “Ascending Wedge” also coincides with the 50-day Moving Average (in blue) (see daily chart).
- The intermediate term RSI oscillator remains above the trendline support and still has some room before hitting its horizontal resistance (see daily chart).
- The 2140/2150 resistance also confluences with multiple Fibonacci projection clusters (see daily & 4 hour charts).
- The 200-day Moving Average (in orange) is acting as a support at around 2040 (see daily chart).
- The short-term Stochastic oscillator still has some room for further upside before reaching its extreme overbought level (see 4 hour chart).
Key levels (1 to 3 weeks)
Intermediate support: 2117/2108
Pivot (key support): 2090
Resistance: 2140/2150
Next support: 2040
Conclusion
As long as the intermediate support zone of 2117/2108 holds, the Index is likely to continue its push up towards the bearish “Ascending Wedge” configuration’s upper boundary at 2140/2150.
On the other hand, a break below the 2085 weekly pivotal support may see another round of choppy decline towards the next support at 2040.
Disclaimer
The information contained in this material is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs. All queries regarding the contents of this material are to be directed to City Index Asia Pte Ltd.
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