Short-term technical outlook on SP 500 Index (Fri, 04 May)
Key technical elements
- Yesterday’s 1.6% tumble seen on the SP 500 Index (proxy for the S&P 500 futures) from its 03 May European session high of 2638 has printed a low of 2593 in the U.S. session. Interestingly, the low of 2593 is just 0.3% away from the key medium-term support of 2585 which is defined by the lower boundary of the “Symmetrical Triangle” range configuration in place since 06 Feb 2018 that confluences with a Fibonacci retracement/projection cluster (see 1st chart).
- Yesterday’s price action of the Index has managed to reverse up sharply from the 2593 low and ended the day with a bullish “Dragonfly Doji” candlestick pattern right above the 2585 key medium-term support (see 1st chart).
- Two key high beta/momentum play sectors (Semiconductors & FANG/Technology) had continued to lead the S&P 500 and displayed positive elements (see 3rd & 4th charts).
- The key short-term support of the SP 500 Index rests at 2610 which is defined by the 61.8% Fibonacci retracement of yesterday’s 03 May upside reversal from 2593 low to 2637 high and the former minor swing low areas of 10 Apr/25 Apr that has been “recaptured” back (bear trap) (see 2nd chart).
- The key short-term resistances stands at 2637 and 2660 (the minor range top of 02/03 May 2018 & close to the 50% retracement of the recent slide from 18 Apr high to yesterday’s low of 2593.
Key Levels (1 to 3 days)
Intermediate support: 2625
Pivot (key support): 2610
Resistances: 2637 & 2660
Next support: 2585 (key medium-term support)
Therefore, as long as the 2610 key short-term pivotal support holds and a clear break above 2637 (an hourly close above it) is likely to see a further potential recovery for the SP 500 Index to target the next resistance at 2660 in the first step.
However, failure to hold at 2610 negates the bullish tone for another round of choppy slide to retest the 2585 key medium-term support.
Charts are from City Index Advantage TraderPro & eSignal
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