sp 500 daily outlook 29 sep potential relief rebound above 1871 support 1438122015

(Click to enlarge chart)

Key elements

• The U.S. SP 500 Index (proxy for the S&P 500) has managed to shape a rebound from today’s intraday low of 1871.
• The low of 1871 also confluences closely with the 76.4% Fibonacci projection from 18 September 2015 high @2am to the 25 September 2015 high @4pm.
• The hourly (short-term) RSI oscillator has flashed a bullish divergence signal and broke above its resistances. This observation suggests a revival of upside momentum in the short-term.
• The intermediate resistance to watch will be at 1912 which is the former support joining the lows of 05 September 2015 @2am and 24 September 2015 @11pm. The 1912 resistance also confluences closely with the 23.6% Fibonacci retracement of the recent down move from 18 September 2015 high @2am to the current low of 29 September 2015 at 1871.

Key levels (1 to 3 days)

Pivot (key support): 1871

Resistance: 1912 & 1940

Next support: 1835/1820 (“Black Monday”, 24 August 2015 low)

Conclusion

As long as the daily (short-term) pivotal support at 1871 holds, the Index is likely to shape a potential rebound to target 1940 in first step before a test on the next resistance at 1940.

On the flipside, a break below the 1871 pivotal support may see the continuation of the decline to retest the “Black Monday”, 24 August 2015 low at 1835/1820

Disclaimer

This report 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 email, 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, a trading name of GAIN Capital Singapore Pte Ltd.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.