Technical forecast for S&P 500

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S&P stuck in a range for a week now. We beat resistance at 1653 to reach the next resistance at 1659 & top out. If we hold 1653 now, look for a retest of 1659/60. A push higher today then targets 1665 for a selling opportunity but a break higher could reach 1673/74. If this does not hold we could see all time highs at 1685.

Below 1653 could see us at 1645. A break of yesterday’s low at 1641 could then test last week’s low at 1634/32. The outlook remains weak so a break lower cannot be ruled out but 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.

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