S&P 500 Technical Analysis: Back Inside Longer Term Range
- Index trading lower alongside other risk assets and bonds
- S&P back in its longer term range after closing below 2137
- Next support might be at 2,100
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The S&P 500 (CFD: SPX500) is trading lower today, as a bound rout worldwide is seeing yields surge while prices fall alongside equities.
The index broke a key support area below 2,150, sending the index back inside its longer term range between the 2,137 and 1,850 areas.
At this stage, the index is sitting above potential support around 2,100, with the next major line of defense appearing to be the big 2,000 level.
A move higher seems likely to face resistance below the 2,150 zone, with price action appearing bearish in the short term if price stays below that zone.
A move above that area may indicate that bulls are back in firm control.
Looking ahead, if the index manages to close the month of September around these levels, a potential bearish topping pattern might emerge.
Interestingly, September is the worst performing month of the year for stocks, being the only month in which the index declines on average.
S&P 500 (CFD: SPX500) Daily Chart: September 12, 2016
--- Written by Oded Shimoni, Junior Currency Analyst for DailyFX.com
To contact Oded Shimoni, e-mail firstname.lastname@example.org
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.