Technical forecast for S&P 500

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S&P broke 1605/04 to hit the next target of 1596/93 & bounced as hoped. The sharp rally has taken us above 1617 & if we can hold above here today we could reach 1628/30. We should struggle here but a break higher could target 1641/42 & possibly strong resistance at 1649/51 for a selling opportunity.

Back below 1616 risks a test of 1608/06 with a bounce possible from here. If however we continue lower we could retest 1596/93 & a low for the day likely. However a break lower meets very good support at 1589/86. A low for the week is very possible here but longs need stops below 1581.

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