sp 500 drop in progress but risk of a minor rebound first 2690332017
Short-term Technical Outlook (Thurs, 06 Apr 2017) (Click to enlarge charts) What happened earlier/yesterday The U.S. S&P 500 Index (proxy for the S&P 500 futures) […]
Short-term Technical Outlook (Thurs, 06 Apr 2017) (Click to enlarge charts) What happened earlier/yesterday The U.S. S&P 500 Index (proxy for the S&P 500 futures) […]
The U.S. S&P 500 Index (proxy for the S&P 500 futures) had staged a pushed up in the early hours of yesterday’s (05 April) U.S. session due to a better than expected ADP employment data for March (263K versus 187K consensus).
Interestingly, the rally stalled right at the predefined 2373/76 medium-term pivotal resistance as per highlighted in our latest weekly technical outlook report published on Monday, 03 April (click here for a recap) before it sold off by 1.1% and closed near its low of 2350 at the end of the yesterday’s U.S. session.
Intermediate resistance: 2355/60
Pivot (key resistance): 2373/76 (medium-term)
Supports: 2337/35 & 2321 (27 March 2017 minor swing low)
Next resistance: 2400 (all-time high area)
Therefore, the Index now may stage a minor rebound first towards the intermediate resistance zone of 2355/60 before another potential downleg materialises to target the next supports at 2337/35 follow by 2321) next in the first step.
On the other hand, a clearance above the 2373/76 medium-term pivotal resistance is likely to invalidate the preferred bearish scenario for a further squeeze up to retest the current all-time high area of 2400.
Charts are from City Index Advantage TraderPro & eSignal
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