News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
SPX Sell-Off Rebounds off Slope Support

SPX Sell-Off Rebounds off Slope Support

Michael Boutros, Strategist
  • SPX breakdown now testing initial slope support
  • Updatedtargets & invalidation levels
  • Looking for trade ideas? Check out DailyFX’s 2016 4Q Projections

SPX Daily

SPX Daily Chart

Chart Created Using TradingView

Broader Technical Outlook: A break of the objective monthly opening-range shifted the focus lower earlier this week with today’s decline encountering support at the 50% line of the descending pitchfork extending off the highs. Although we may see a near-term reprieve off this level, the outlook remains weighted to the downside while below the August lows at 2147- a breach above this mark is needed to alleviate further downside pressure. A break lower targets the 23.6% retracement of the 2016 range at 2103 & the 100% extension of the decline at 2094(note that the lower median-line parallel converges on this level over the next few days).

SPX 240min

SPX 240min Chart

Notes: A closer look at the index shows a sharp reversal off the 50-line today in New York with the advance now testing median-line resistance. If this week’s breakdown is the onset of a more meaningful reversal in the SPX, look for resistance to hold at 2147- this level converges on the 50% line into the close of the week.

From a trading standpoint I’d be looking to fade strength while below the median-line targeting objectives into confluence support at 2094 – an area of interest for exhaustion / long-entries.

On the data front, look for the U.S. Advanced Retail Sales & the University of Michigan confidence surveys to offer up some volatility with Fed Chair Janet Yellen also slated for a speech tomorrow morning at the Boston Fed Conference. Continue tracking this setup and more throughout the week- Subscribe to SB Trade Desk and take advantage of the DailyFX New Subscriber Discount.

Help fine-tune you entries, click here to learn more about the DailyFX Grid Sight Index (GSI)

Relevant Data Releases

SPX Sell-Off Rebounds off Slope Support

Other Setups in Play:

---Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michaelon Twitter @MBForex contact him at mboutros@dailyfx.com or Click Here to be added to his email distribution list

Join Michael for Live Scalping Webinars on Mondays on DailyFX and Tuesday, Wednesday & Thursday’s on SB Trade Desk at 12:30 GMT (8:30ET)

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES