sp 500 daily outlook wed 21 oct potential last push up remains intact above 2022 support 1628002015

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What happened yesterday

Despite yesterday’s late sell-off, the U.S. SP 500 Index (proxy for the S&P 500) has managed to hold above the 2022 daily pivotal support.

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

Key elements

• 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 significant short-term support remains at 2022 which is defined by its former short-term range top area at 09 October to 13 October 2015 now turns pull-back support.
• The hourly (short-term) RSI oscillator still remains bullish above its trendline support and the 50% neutrality level. This observation suggests that short-term upside momentum remains intact.

Key levels (1 to 3 days)

Pivot (key support): 2022

Resistance: 2050/2060

Next support: 1992

Conclusion

Short-term technical elements remain positive and as long as the 2022 daily (short-term) pivotal support holds, the Index is likely to stage the “final push up” to target the 2050/2060 significant resistance zone.

On the other hand, a violation below the 2022 pivotal support may invalidate the “last push up” scenario to see the start of a deeper slide towards the neckline support of the “Double Bottom” bullish breakout and ascending channel’s lower boundary at 1992

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