sp 500 daily outlook wed 15 june 2016 risk of further push up below 20982100 before potential drop 1
S&P 500 – Risk of further push up below 2098/2100 before potential drop
S&P 500 – Risk of further push up below 2098/2100 before potential drop
The U.S. SP 500 Index (proxy for the S&P 500 futures) has tumbled as expected and hit the first downside target zone at 2064/2061 (printed a low of 2064) before it traded sideways throughout yesterday’s U.S. session. Please click on this link for a recap on our previous daily short-term technical outlook/strategy.
Today’s key economic even risk will be the U.S. central bank, Fed monetary policy meeting @1800GMT where it will be widely expected to keep the benchmark policy interest rate unchanged at 0.5%. Latest data as at 14 June 2016, the Fed Funds futures is only pricing in a 2% probability of an interest rate hike today with a probability of 21% chance of hike in the next Fed meeting on 24 July 2016.
The probability of the rate hike in July has been decreased significant from a probability of 46% from 4 weeks before the dismal Nonfarm payrolls data for May.
What are important in today’s meeting will be the Fed officials’ latest economic projections to gauge whether they are still keeping their prior projected at least two policy interest rate hikes before 2016 ends and also Chairwoman, Yellen press conference.
Intermediate resistance: 2074
Pivot (key resistance): 2085
Supports: 2064 & 2058/54
Next resistance: 2098
Maintain bearish bias. The Index may see a further potential push up first towards 2085/91 with a maximum limit set at the 2098/2100 short-term pivotal resistance before another downleg to target the next support at 2058/54.
However, a clearance above the 2098/2100 short-term pivotal resistance is likely to invalidate the preferred bearish scenario to see another upward choppy movement to retest the 09 June 2016 swing high at 2121.
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