S&P Trapped in Narrow Range

near-term picture remains the same, S&P is trapped within the 2440 to 2430 narrow range. While several short-term indicators are pointing toward a fading trend, positive trading sentiment could help minimize downside risk. S&P’s 2430 marks the inflection point. A failure to hold above that level indicates a change in sentiment and a much deeper pullback should be expected

S&P Tested Key Support

S&P is testing support at 2430, based on the lower boundary of the pink band. The longer the index stay near that level, the more vulnerable it is to lower prices. This is the real danger in the current market.

S&P Vulnerable to further Downside Retracement

we remain near term neutral/negative for S&P as we believe market vulnerable to some downside retracement. S&P has 2433-2428 to trade against. If that were to break, we would see 2400 next

S&P Breakout Might not Sustain

the fact that market is overbought as S&P poked its head into the level that had been successful in repelling price action in the past does not favor a sustain breakout. The long term technical backdrop however, remains bullish so we’d look to increase upside exposure on market dips rather than chasing breakouts

Odds of Deep Correction are high

a growing number of indicators suggest that the market is running out of steam. The market is heavily overbought, sentiment is extremely high and breath is deteriorated. In our view the odds of a deep correction are high

S&P in Short-term Pullback Consolidation Phase

based upon recent trading actions, the S&P is in a midst of a short-term pullback consolidation phase. However, the return of short-term oversold condition could help minimize downside follow-through and widespread breakdowns

S&P Quick Run Shown Signs of Exhaustion

S&P’s quick run is showing some signs of exhaustion, noting a struggle for the index to get far past the early June high. The longer the index stay below that level, the more vulnerable it is to lower prices.

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