Technical forecast for S&P 500

SP4

Emini S&P Sep13 broke trend line support at 1676/75. We wrote yesterday: THIS IS IMPORTANT AS IT WOULD COMPLETE A BEARISH HEAD & SHOULDERS PATTERN & TARGET 1647/45 BEFORE THE END OF AUGUST. We saw a very sharp drop on the break as we close in on our target of 1647/45. This should hold the downside if tested today but longs need stops below 1641 as a break lower could then target 1630/29. Exit shorts & try longs here with stops below 1623.

If we see a bounce from the low so far at 1654 look for a test of resistance at 1664/65. A high for the day is possible here but any shorts need stops above 1670 for a selling opportunity at 1673/74. Exit longs & try shorts with stops above 1679 for a second selling opportunity 1685/86.

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