sp 500 potential capitulation above 20051995 1818532016
(Click to enlarge charts) What happened earlier/yesterday The U.S. SP 500 Index (proxy for the S&P 500 futures) has tested the 2110/21 medium-term pivotal resistance […]
(Click to enlarge charts) What happened earlier/yesterday The U.S. SP 500 Index (proxy for the S&P 500 futures) has tested the 2110/21 medium-term pivotal resistance […]
The U.S. SP 500 Index (proxy for the S&P 500 futures) has tested the 2110/21 medium-term pivotal resistance and plummeted towards the medium-term downside target/support at 2036 (printed a low of 2007 in today’s Asian session) as highlighted in our earlier weekly technical outlook/strategy published on Monday (click here to recap).
The carnage seen across all major stock indices futures in this morning Asian session has appeared to be less severe for the S&P 500 futures as it only tumbled by 5.6% from today’s early Asian session high versus DAX (-12.4%), FTSE 100 (-11.3%) and Nikkei (-10.9%). Thus, it will be imperative to monitor the movement of the leader, S&P 500 in the next few weeks that can drive a potential recovery for global equities.
Intermediate support: 2025
Pivot (key support): 2005/1995
Resistances: 2052, 2083 & 2100/105
Next support: 1947/30
The decline seen in today’s Asian session may be a capitulation where a significant recovery can take place. As long as the 2005/1995 pivotal support holds and a break above 2052, the Index may see a further push up to target the next short-term resistance at 2083 in the first step.
On the other hand, failure to hold above the 2005/19950pivotal support is likely to unleash another round of slide to test the next support at 1947/30 (neckline support of “Double Bottom” breakout & the 61.8% Fibonacci retracement of the rally from 11 February 2016 low to this morning Asian session high of 2127)
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