Technical forecast for S&P 500

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.