To receive James Stanley’s analysis directly via email, please SIGN UP HERE
Talking Points:
- S&P 500 Technical Strategy: Flat
- S&P 500 continues to trade within the symmetrical wedge identified yesterday.
- Standing aside until a more-actionable setup becomes clear.
The S&P 500 continues to trade within the symmetrical wedge pattern identified in yesterday’s piece, with price action staying confined to a 30-handle range thus far on the week. With US data on the docket ahead of FOMC (Advance Retail Sales came out under expectations, CPI to be released tomorrow), be careful of false breakouts ahead of a ‘big move’ on Thursday afternoon when the Fed finally tells the world whether-or-not we’re getting that September interest rate hike.
Since prices haven’t changed much since yesterday, the same levels still apply. Breaks of 1,995-2,000 could open the door for long positions up to 61.8% Fibonacci resistance at 2,021.1, prior price action support of 2,040 and then 2,065.5 (the 76.4% retracement of the ‘panic move’ in the S&P 500).
For short positions, breaks of 1,905.2 could provide motivation for short-trigger, and this would open the door for targets at 1,886.5 which is the 23.6% Fib retracement of the October 2011 low to the May of 2015 high, 1,833.5 (the ‘panic low’ that was set on August 24th), 1,819 (the October 2014 low), and then 1,791 (23.6% Fib level of the ‘big picture’ move of the Financial Collapse low to the May 2015 high).
Written by James Stanley of DailyFX; you can join his distribution list with this link, and you can converse with him over Twitter @JStanleyFX.
