Technical forecast for S&P 500

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S&P took a tumble but held above last week’s low at 1634/32. The outlook remains weak so we could see this area tested today. 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 1653 should be a challenge & has held the bounce so far. However a break higher could reach 1659 & possibly as far as 1665 for a selling opportunity.

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