Technical forecast for S&P 500

Emini S&P Dec13 tested all time highs at 1704/05 & saw a sharp rejection to leave a bearish double top. This is a worryingly negative pattern in a severely overbought market & it is now too risky to hold longs unless we close above 1705. A sell off in to the end of September is looking increasingly likely & selling in to medium term shorts now with stops above 1710 looks like a worthwhile trade. A move towards August lows at 1625 does not look unrealistic. Today we have support at 1685/84 to fill the gap. Failure here however then targets 1674/73. Look for a low for the day & a buying opportunity at this stage, with stops below 1670.

Resistance at 1701/04 should hold the topside for a selling opportunity with stops above 1710.

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. has established itself as the leading provider of... More