Technical forecast for S&P 500

SP2

S&P Sep13 has hit our target of 1672/73 & registered the highest ever close. If this does not hold us back then a retest of all time highs at 1685 cannot be ruled out.

However we are severely overbought short term & getting very overbought on the daily chart also. There is therefore always a risk of profit taking after a strong 2 week rally of over 100 points. Immediate support is 1655/53 but below here we should see a bounce from 1644/42 today.

Be aware that failure now to sustain a break above 1685/86, leaves a bearish double top in place & should send us back towards 1550 over the next few months.

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