sp 500 daily outlook friday 13 nov potential relief rebound above 2041 support 1756282015

(Click to enlarge chart)

What happened yesterday

The U.S. SP 500 Index (proxy for the S&P 500) has plummeted as expected below the 2080/2087 short-term resistance zone and hit our expected target at 2058 (printed a low of 2043 in this morning Asian session, 13 November 2015).

Please click on this link for a recap on our previous daily outlook/strategy.

Key elements

• Current price action is now resting just above a key short-term inflection level at 2041 as defined by a Fibonacci cluster (1.00 projection from 04 November 2015 high @3am to 10 November 2015 low @1am projected from 11 November 2015 high@8pm + 2.00 projection from 11 November 2015 high @8pm to 11 November 2015 low @11pm projected from 12 November 2015 high @4pm).
• The hourly (short-term) Stochastic oscillator has just started to inch up from its oversold region which suggests that the downside momentum of the recent down move has started to abate.
• The key short-term resistance to watch will be at the 2070/2083 zone which confluences with the trendline resistance (in pink) linking the lower highs since 04 November 2015 @9pm and the 50% Fibonacci retracement of the recent down move from 04 November 2015 high to the current low seen this morning, 13 November 2015.
• Based on the Elliot Wave Principal, the Index is likely/almost completed the first leg of the multi-week pull-back/consolidate phase, wave a. As long as 2041 support is not broken, it may shape a short-term rebound for the wave b before another bearish leg, wave c materialises.

Key levels (1 to 3 days)

Pivot (key support): 2041

Resistance: 2070 & 2083

Next support: 2018

Conclusion

Short-term technical elements are advocating a “potential rebound” to occur above the 2041 short-term pivotal support with targets at the intermediate resistances of 2070 before 2083.

On the other hand, failure to hold above the 2041 pivotal support is likely to open up scope for a direct decline towards the weekly downside target at 2018 (click here for more details as per highlighted in our latest weekly outlook/strategy).

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.