sp 500 daily outlook tues 20 oct potential push up towards 20502060 risk zone 1620652015

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Key elements

• The U.S. SP 500 Index (proxy for the S&P 500) has continued to inch higher from its former short-term range top area at 09 October to 13 October 2015 now turns pull-back support at 2022.
• The significant medium-term resistance zone remains at 2050/2060 which is defined by 2050/2060 which is defined by the pull-back resistance of the former swing lows from 11 March to 05 June 2015, the 200-day Moving Average and upper boundary of a shorter-term ascending channel in place since 29 September 2015 low
• The 2050/2060 resistance also confluences with the 5^th wave target of 1.00 time of the length of wave 1 projected from the low of wave 4 (1991) seen at 15 October 2015 @2am based on the Elliot Wave Principal.
• The daily (medium-term) Stochastic oscillator has reached its extreme overbought level which suggests limited further potential upside after a current ally of  8.7% seen from the 29 September 2015 low.
• The hourly (short-term) RSI oscillator still remains bullish above its support and the 50% neutrality level. This observation suggests there are “some pockets” of short-term upside momentum left a potential push up.

Key levels (1 to 3 days)

Pivot (key support): 2022

Resistance: 2050/2060

Next support: 1992

Conclusion

As long as the 2022 daily (short-term) pivotal support remains intact, the Index is likely to see potential push up towards the key 2050/2060 resistance zone.

However, a break below the 2022 pivotal support may negate the bullish tone to see a pull-back to retest the neckline support of the “Double Bottom” bullish breakout at 1992.

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