Technical forecast for S&P 500

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S&P Sep13 reached the next target of 1647/48 & topped almost exactly here at 1649. We are very overbought short term now & hitting 6 month trend line resistance. There is therefore a risk of a move lower today. We would look for a test of support at 1638/36 & a bounce from here possible. However if we continue lower we should see 1632/31 before excellent support at 1628/26 & a buying opportunity for the day.

Be ready to go with a break above 1650 for a test of June highs at 1655/57. This should hold the topside at this stage but above 1660 could see a move towards 1672/73.

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