sp 500 declined but still holding above 216055 support 1824252016
Daily Outlook, Tues 02 August 2016 (Click to enlarge charts) What happened earlier/yesterday The U.S. SP 500 Index (proxy for the S&P 500 futures) has […]
Daily Outlook, Tues 02 August 2016 (Click to enlarge charts) What happened earlier/yesterday The U.S. SP 500 Index (proxy for the S&P 500 futures) has […]
The U.S. SP 500 Index (proxy for the S&P 500 futures) has started to slip lower in today’s European session (02 August) from yesterday high of 2183) and printed a current intraday low of 2163 (translated into a decline of 0.9% from the high of 2183).
This decline came in line with the JGB 10 year yields that has spiked up to -0.06% ( 4th consecutive day of rallies from 27 July 2016 low of -0.291 and renewed JPY’s strength that saw the USD/JPY breached below last Friday’s low of 101.94 (current it is testing the lower limit of the medium-term support of 101.50).
In addition, the Japanese cabinet has approved 4.6 trillion yen in extra spending for the current fiscal which is just a fraction (16%) of the total 28 trillon yen stimulus package announced last week by PM Abe.
Intermediate support: 2160
Pivot (key support): 2155 (medium-term)
Resistances: 2183 & 2194
Next supports: 2120
The Index is still holding above the 2160/2155 support but it needs to break out fast above 2183 to reignite the bullish tone for a potential rally to target the next resistance at 2194 in the first step.
However, failure to hold above 2155 medium-term pivotal support is likely to invalidate the preferred bullish scenario to see a deeper decline towards the upper limit of the pull-back zone of 2120 that was the former range top that capped all previous advances since May 2015 high.
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