sp 500 daily outlook for wed 12 aug 2059 is the key short term support to watch 1014752015

(Click to enlarge charts)

Key elements

• Since the 21 July 2015 high @12am, the US SP 500 Index (proxy for the S&P 500) has evolved into a short-term descending wedge range configuration (in dark brown) with lower (support) and upper (resistance) boundaries at 2059 and 2104 respectively (see 4 hour chart).
• The recent steep fall seen in the price action is now resting at the 2059 descending wedge range support which also confluences with a Fibonacci cluster (76.4% Fibonacci retracement of the up move from 09 July 2015 low @12am to 21 July 2015 high @12am + 0.764 Fibonacci projection from 21 July 2015 high @12am to 31 July 2015 high@8pm) (see 4 hour chart).
• The hourly Stochastic oscillator has reached its extreme oversold region which suggests limited downside potential for the Index (see 1 hour chart).
• The intermediate resistance stands at 2077 (see 1 hour chart).

Key levels

Pivot (key support): 2059

Resistance: 2077

Next support: 2045/2040

Conclusion

As long as the 2059 daily pivotal support holds, the Index may see a short-term rebound towards the 2077 resistance.

On the other hand, a break below the 2077 support is likely to trigger a further slide to retest the key 08 July 2015 swing low at 2045/2040.

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