sp 500 daily outlook wed 14 oct still holding above 1992 weekly pivotal support 1571342015

(Click to enlarge charts)

What happened yesterday

The U.S. SP 500 Index (proxy for the S&P 500) had a volatile session yesterday where it pushed higher in the first half of the U.S. session to print a high of 2023 (closed to last Friday, 09 October 2015 high of 2022 before the Index went into range trading environment of 14 points) and collapsed into the close to record a low of 1999.

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

Key elements

• Current price action is coming close to the pull-back support of the “Double Bottom” bullish breakout at 1992 which is also our current weekly pivotal support.
• The daily (medium-term) and hourly (short-term) RSI oscillators are still hold above their respective supports.
• The next support to watch will be at 1958/1950 which is defined by the trendline support (in orange) in place from the 29 September 2015 low and the 50% Fibonacci retracement of the up move from 02 October 2015 low to yesterday’s 13 October 2015 high.
• The significant resistance rests at 2040/2050 which is the pull-back resistance of the former swing lows from 11 March to 05 June 2015 and the 200-day Moving Average.

Key levels (1 to 3 days)

Pivot (key support): 1992 (weekly pivot)

Resistance: 2040/2050

Next support: 1958/1950

Conclusion

Technical elements are still positive and as long as the 1992 weekly pivotal support holds, the Index is likely to see a recovery to target the 2040/2050 significant resistance zone.

On the flipside, a crack below the 1992 key pivotal support may invalidate the recovery scenario to see a deeper slide to test the next support at 1958/1950

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