sp 500 potential major top may have been formed 1843362017
Short-term Technical Outlook (Thurs, 02 Feb 2016) (Click to enlarge charts) What happened earlier/yesterday Yesterday, U.S. S&P 500 Index (proxy for the S&P 500 futures) […]
Short-term Technical Outlook (Thurs, 02 Feb 2016) (Click to enlarge charts) What happened earlier/yesterday Yesterday, U.S. S&P 500 Index (proxy for the S&P 500 futures) […]
Yesterday, U.S. S&P 500 Index (proxy for the S&P 500 futures) has staged an initial push up to print a high of 2289 right before the start of the U.S. cash market open.
The initial positive feedback loop fuelled by the better than expected fiscal Q1 2017 earnings results from Apple (AAPL) has dissipated as the Index traded lower throughout the day even after FOMC monetary policy decision (no rate hike accompanied by a less hawkish statement).
In our latest weekly technical outlook report published earlier on Tuesday, 31 January 2017, we have a preference for a potential last push up towards 2310 max 2326/35 before a correction sets in (click here for a recap). Yesterday’s price action has negated this “last push up scenario” and the Index may have already formed a major top at last week high of 2303.
Intermediate resistance: 2275
Pivot (key resistance): 2289
Supports: 2257/54 & 2232
Next resistance: 2303
Technical elements have turned negative for the Index. As long as the 2289 pivotal resistance is not surpassed, the Index is likely to see a further push down to retest the minor range support of 2257/54 (12 Jan/24 Jan 2017) before targeting the next support at 2232 (30 December 2016 low & the 1.1618 Fibonacci projection from 26 January 2017 high).
However, a clearance above 2289 may invalidate the bearish scenario to see a squeeze up to retest the recent all-time level of 2303.
Charts are from City Index Advantage TraderPro & eSignal
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