Chart of the day SP 500 is still exhibiting a minor toppish configuration

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By :  ,  Financial Analyst

Short-term technical outlook on US SP 500 Index (Thurs, 16 Nov)

Key technical elements

  • Yesterday (15 Nov), the US SP 500 Index (proxy for the S&P 500 futures) had managed to stage a bearish breakdown below the key 2565 medium-term downside trigger level (click here for details as per highlighted in our latest weekly technical outlook) right at the U.S session opening hour. It printed a low of 2556 before it staged a rebound within the first hour of the U.S. session to print an intraday high of 2573 before it closed back at 2565 at the end of yesterday, U.S. session.
  • Despite yesterday’s whipsawed price movement around the 2565 downside trigger level, the technical elements are still not advocating for a recovery at this juncture. The daily RSI oscillator has broken below its significant corresponding support at the 60% and remains below it which suggests that no clear signs of a resurgence in upside momentum.
  • The impending minor “Head & Shoulders” bearish reversal configuration remains intact. The key short-term resistance stands at the 2573/80 zone which is defined by the former minor range support of 10/13/14 November 2017, the minor descending trendline from 09 November 2017 high and the pull-back resistance of the former medium-term ascending channel support from 29 August 2017 low (see 1 hour chart).
  • The next significant short-term support rests at 2544 which is defined by the swing low areas of 19/26 Oct 2017 and the 76.4% Fibonacci projection of the down move from 09 November 2017 high to 10 November 2017 low projected to yesterday’s high of 2573 (based on the Elliot Wave/fractal analysis, a typical 5th wave target to indicate the potential end of the on-going minor degree bearish impulsive wave sequence from 09 Nov 2017 high).

Key Levels (1 to 3 days)

Pivot (key resistance): 2573/80

Supports: 2565 & 2544

Next resistances: 2588 & 2597 (medium-term pivot)


The Index is still exhibiting bearish elements. Therefore as long as the 2573/80 key short-term pivotal resistance is not surpassed and a clear break below (hourly close in the U.S. session) 2565 is likely to see potential downside acceleration towards the next intermediate support at 2544.

However, a clearance above 2580 shall invalidate the bearish scenario for a choppy upward movement to retest 2588 and even its current all-time level at 2597.

Charts are from City Index Advantage TraderPro


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