sp 500 daily outlook thurs 12 nov bearish tone remains intact below 20802087 resistance 1753822015

(Click to enlarge chart)

What happened earlier

The U.S. SP 500 Index (proxy for the S&P 500 has pushed up and reacted off just below the 2093 pivotal resistance (printed a high of 2092) as expected.

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

Key elements

• Price action has broken below a short-term support linking the lows since 10 November 2015 @1am now turns pull-back resistance (in pink) at 2080.
• The key short-term resistance to watch now will be at 2087 which is defined by the trendline resistance that is capping the Index since 04 November 2015 high and a Fibonacci projection taken from the recent low of 10 November 2015.
• The key short-term support remains at 2058 which is the 28 October 2015 swing low that also confluences with the 1.618 Fiboancci projection from 11 November 2015 high @9pm to 11 November 2015 low @11pm projected from 12 November 2015 high @1am
• The hourly  (short-term) Stochastic oscillator has inched back up into its overbought region which suggests limited upside potential for the price action of the Index at this juncture

Key levels (1 to 3 days)

Intermediate resistance: 2080

Pivot (key resistance): 2087

Support: 2069 & 2058

Next resistance: 2116

Conclusion

As long as the adjusted daily (short-term) pivotal resistance at 2087 is not surpassed, we are still in favour of the corrective (bearish) movement of a potential multi-week pull-back/consolidation phase to retrace the impulsive bullish wave structure from 29 September 2015 low to the recent 2116 high of 04 November 2015. The expected short-term downside target is at 2069 follow by 2058.

However, a break above the 2087 pivotal resistance may invalidate the “pull-back” scenario to see a push up to retest the recent swing high at 2116.

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