SPX (S&P 500 Index) 2071.0 - bullish - Rallies above key resistance zone
SPX rallied strongly from 1871.91 (September 29, 2015 low) to probe above the 200 day moving average, 4-year rising trendline (from October 2011 low) and 76.4% of the 2132.82/1871.91 fall, posting a new two-month high at 2079.74 (October 23, 2015, as shown on the daily chart), before consolidating. As the daily indicators are in the overbought territory, potential pullbacks are warranted. The 2058.19 area (October 23, 2015 low) should provide immediate support. Below lies the 2020.86/2017.22 support zone (September 17, 2015 range high/October 21, 2015 higher low) where buyer should step in. However, reclaiming 2079.74 quickly would signal further bullish momentum to open 2103.47 (August 18, 2015 high) ahead of 2114.24 (July 31, 2015 high). Above would reveal the 2132.82/2134.72 topping area (July 20,2015 high/May 20, 2015 record high).
Outlook:
Daily: bullish (above the 200 day moving average)
Weekly: bullish
SPX rallied strongly from 1871.91 (September 29, 2015 low) to probe above the 200 day moving average, 4-year rising trendline (from October 2011 low) and 76.4% of the 2132.82/1871.91 fall, posting a new two-month high at 2079.74 (October 23, 2015, as shown on the daily chart), before consolidating. As the daily indicators are in the overbought territory, potential pullbacks are warranted. The 2058.19 area (October 23, 2015 low) should provide immediate support. Below lies the 2020.86/2017.22 support zone (September 17, 2015 range high/October 21, 2015 higher low) where buyer should step in. However, reclaiming 2079.74 quickly would signal further bullish momentum to open 2103.47 (August 18, 2015 high) ahead of 2114.24 (July 31, 2015 high). Above would reveal the 2132.82/2134.72 topping area (July 20,2015 high/May 20, 2015 record high).
Outlook:
Daily: bullish (above the 200 day moving average)
Weekly: bullish
