sp 500 daily outlook tues 17 nov pull back before new potential rise above 20402029 support 17681020

(Click to enlarge chart)

Key elements

• Yesterdays’ steep push up in price action of the U.S. SP 500 Index (proxy for the S&P 500)  has reached the upper boundary of the short-term bullish ascending channel in place since yesterday’s 17 November 2015 low at 2055.
• The hourly (short-term) Stochastic oscillator has exited from its overbought region and it is now heading towards the extreme oversold level.
• The lower limit (support) of the short-term ascending channel stands at 2040 which also confluences closely with the 50% Fibonacci retracement of the up move from 16 November 2015 low to 17 November 2015 high @10am.
• The short-term key resistance is at 2070/2073 which is defined by the pull-back/trendline resistance and the 61.8% Fibonacci retracement of the recent steep down move from 04 November 2015 high to 16 November 2015 low (click here for more details as per highlighted in our latest weekly outlook/strategy).

Key levels (1 to 3 days)

Intermediate support: 2040

Pivot (key support): 2029

Resistance: 2070/2073

Next support: 2003

Conclusion

Short-term technical elements are advocating for a minor pull-back towards 2040 with a maximum limit set at the 2026 daily pivotal support before a new potential rise occurs to target the 2070/2073 resistance.

On the other hand, a break below the 2029 pivotal support may put a halt the on-going recovery process for slide to retest yesterday’s low at 2003.

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