sp 500 daily outlook thurs 08 dec watch the 2064 short term support for a potential upturn 178983201

(Click to enlarge chart)

What happened earlier

The U.S. SP 500 Index (proxy for the S&P 500) has declined by 1.4% from 2096 to record a low of 2066 seen yesterday after a remarkable recovery on last Friday, 04 December 2015.

 Key elements

• Current price action is now resting just above the lower boundary (support) of the ascending channel (in dark blue) in place since 29 September 2015 low now at 2064.
• The 2064 support also confluences with the 61.8% Fibonacci retracement of last Friday recovery from  04 December 2015 low of 2041 to yesterday, 07 December 2015 high of 2096.
• The hourly (short-term) Stochastic oscillator has turned up from its oversold region which suggests that the downside momentum seen from yesterday’s decline has started to wane. This observation suggests a potential recovery in price action is round the corner.
• The key resistance stands at 2106 which is the descending trendline that is capping previous advance in price action since 19 May 2015 high (click here for more details as per highlighted in our latest weekly strategy/outlook).

Key levels (1 to 3 days)

Pivot (key support): 2064

Resistance: 2096 & 2106

Next support: 2050 (weekly pivot)

Conclusion

As long as the 2064 daily (short-term) pivotal support holds, the Index is likely to see a potential push up to retest yesterday’s minor swing high at 2096 and even the key medium-term trendline resistance at 2106.

On the flipside, failure to hold above the 2064 short-term pivotal support may see the continuation of yesterday’s decline to test the weekly pivotal support at 2050.

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