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.