sp 500 daily outlook thurs 28 apr 2016 bearish tone remains intact watch the next supports at 2065 a
(Click to enlarge charts) What happened yesterday/earlier The U.S. SP 500 Index (proxy for the S&P 500 futures) has started to shape a push up […]
(Click to enlarge charts) What happened yesterday/earlier The U.S. SP 500 Index (proxy for the S&P 500 futures) has started to shape a push up […]
The U.S. SP 500 Index (proxy for the S&P 500 futures) has started to shape a push up after the release of the Fed’s widely expected in the no interest rate hike. In the press statement, the Federal Open Market Committee omitted the previous language that “global economic and financial developments continue to pose risk” and instead Fed officials mentioned it will “closely monitor” the external environment. This implies that the Fed’s view on the state of global financial markets has improved after the rout seen at the start of 2016 and increase the probability of a rate hike in the June meeting.
The U.S. SP 500 Index has managed to stage a push up in yesterday’s late U.S. session and tested the 2100 predefined short-term pivotal resistance but it did not break above it. In today’s Asian session, it has reversed down sharply from 2100 as expected and hit our first target (support) at 2077.
Please click on this link for a recap on our on our previous short-term daily outlook/strategy.
Intermediate resistance: 2083
Pivot (key resistance): 2100
Supports: 2065 & 2044/2036
Next resistances: 2110 (weekly pivot)
Maintain bearish bias. The Index may now see a further decline towards the 2065 support before a potential minor rebound occurs towards the short-term intermediate resistance at 2083. Thereafter, another downleg may occur to target the next resistance at 2044/2036.
On the flipside, a break above 2100 pivotal resistance is likely to dampen the bearish expectation to see an upward choppy price action to retest the significant medium-term swing high of 2110 (weekly pivotal resistance).
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