sp 500 daily outlook fri 09 dec rebounded just above 2050 weekly pivotal support 1790042015

(Click to enlarge charts)

What happened yesterday

The U.S. SP 500 Index (proxy for the S&P 500) has broken below 2064 short-term pivotal support and drifted down close to the 2050 weekly pivotal support.

Key elements

• Yesterday’s plunge in price action has managed to hold above our 2050 weekly pivotal support (click here for more details as per highlighted in our latest weekly outlook/strategy) and the lower boundary of the ascending channel in place since 29 September 2015 low.
• Since 02 December 2015 high, the Index has appeared to evolve into a sideways “Symmetrical Triangle” consolidation pattern (in brown) with its lower boundary close to the 2050 weekly pivotal support.
• The upper boundary (resistance) of the “Symmetrical Triangle” stands at 2088 which is also close to the 0.764 Fibonacci projection of the up move from 04 December 2015 low to 07 December 2015 high projected from yesterday’s 08 December 2015 low.
• The daily (medium-term) RSI oscillator is still above its trendline support.

Key levels (1 to 3 days)

Intermediate support: 2060

Pivot (key support): 2050

Resistance: 2069 & 2088/2096

Next support: 2041

Conclusion

As long as the 2050 weekly pivotal support holds and a break above the 2069 intermediate resistance is likely to trigger a further potential push up towards the “Symmetrical Triangle” range resistance at 2088/2096.

However, failure to hold above the 2050 key pivotal support may invalidated the push up scenario for a further slide to retest last Friday, 04 December 2015 swing low at 2041.

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