sp 500 daily outlook fri 26 feb 2016 second phase of countertrend rally is likely to have started 17
(Click to enlarge charts) What happened yesterday The U.S. SP 500 Index (proxy for the S&P 500 futures) has a clear break above the 1947 […]
(Click to enlarge charts) What happened yesterday The U.S. SP 500 Index (proxy for the S&P 500 futures) has a clear break above the 1947 […]
The U.S. SP 500 Index (proxy for the S&P 500 futures) has a clear break above the 1947 range top (short-term pivotal resistance) and invalidated our preferred scenario for a second round of the downleg on the pull-back/consolidation that started from 23 February 2016 high.
Please click on this link for a recap on our previous daily outlook/strategy
Pivot (key support): 1939/30
Resistances: 1974 & 1994
Next support: 1890
Current technical elements have now turned the upper hand back to the bull camp. The expected pull-back/consolidation is likely to have ended shallower than expected (only hitting our first downside target at 1900) where the Index may have started to undergo the second phase of its countertrend rally, wave (b) in terms of the Elliot Wave Principal.
As long as the 1939/30 short-term pivotal support holds, the Index is likely to see a further upside movement to target the resistances of 1974 before 1994.
On the flipside, a break below 1930 may negate the bullish tone to see a slide back to retest Wednesday, 24 February low of 1890.
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