sp 500 daily outlook tues 22 sep testing the critical range support at 1946 1372982015

(Click to enlarge charts)

Key elements

• The U.S. SP 500 Index (proxy for the S&P 500) has tested and managed to stage a rebound from its range support which is defined by the ascending trendline linking the lows since 02 September 2015.
• The Index has started to slide in the today’s early European session and it is now testing the range support at 1946.
• The range top (resistance) is at 1996 which is the failure bullish breakout after the Fed’s FOMC announcement on 18 September 2015 (Singapore time).
• The hourly (short-term) Stochastic oscillator has dipped back into its extreme oversold level which suggests that a potential turnaround in price action is imminent after a slide seen today in the European session.

Key levels (1 to 3 days)

Pivot (key support): 1946 (weekly pivot)

Resistance: 1979 & 1996

Next support: 1910

Conclusion

The current sell-down seen in the Index has just tested the critical range support at 1946. As long as 1946 holds, the Index may see a potential recovery towards yesterday’s high at 1979 and even the 1996 upside trigger level.

However, failure to hold above the 1946 pivotal support is likely to invalidate the recovery scenario for a deeper slide to test the next support at 1910 in the first intstance.  

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