sp 500 daily outlook fri 20 nov potential upside movement to resume above 20782070 support 177463201

(Click to enlarge chart)

What happened yesterday

The U.S. SP 500 Index (proxy for the S&P 500) has shaped the expected minor-pull back towards the 2078 intermediate support.

Please click on this link for more details on our previous daily technical outlook/strategy.

Key elements

• Current price action is now resting at the 2078 intermediate support which is also close to the lower boundary of the short-term bullish ascending channel in place since this Monday, 16 November 2015 low.
• In conjunction, the hourly (short-term) RSI oscillator is also at right at its support and 50% neutrality level which highlights the revival of an upturn in upside momentum.
• The key short-term resistance remains at 2110 which is defined by the upper boundary of the aforementioned ascending channel, 1.00 Fibonacci projection of the up move from 16 November 2015 low to 18 November 2015 high @12am projected from 18 November 2015 low @4am and the pull-back resistance (in brown) linking the former minor swing lows of 29 October, 02 November and 06 November 2015.

Key levels (1 to 3 days)

Intermediate support: 2078

Pivot (key support): 2070

Resistance: 2092 & 2110

Next support: 2045

Conclusion

No change in our bullish stance as technical elements have suggested that the minor pull-back is coming to an end. As long as the 2078/2070 key short-term support zone holds, the Index is likely to stage another round of potential upleg to retest 2092 before targeting the 2110 key resistance.

On the flipside, failure to hold above the 2070 pivotal support is likely to damage the short-term bullish tone to see a deeper pull-back towards the next support at 2045.

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