Technical forecast for S&P 500

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S&P went higher than expected to 1672 but sold off sharply. We have decent support at 1651/49 but longs need stops below 1645 as this risks a retest of last week’s low at 1634/32. A break lower cannot be ruled out this week with the daily chart looking increasingly negative. However 1627/26 is strong support for a first test at least so maybe exit shorts & try longs with stops below 1620 for a buying opportunity at 1614.

Resistance at 1665 could hold the topside today but above here we meet 1672/74. A break higher would be a surprise but opens the door to a retest of all time highs at 1685.

Jason Sen began his career in the options pits on the trading floor of LIFFE in 1987 at the age of 19, making markets on his own account. In 2001 when the trading floor closed he successfully made the transition to day trading on computer screens. Jason always had an interest in technical analysis throughout his trading career but began to study this area in depth from 2006. www.daytradeideas.com has established itself as the leading provider of... More