the S&P 500 index is setting up nicely to challenge the formidable point of resistance at the area of the July recovery high near 1100. The bullish perspective is that a sustain breakout above that level will break the 2-week sideway trading range and could trigger a massive short-covering rally that will eventually push prices up to the next level of resistance near 1131, or the June recovery high.
trading pattern on the S&P 500 index suggests that short-term condition is ripe for some sort of pullback consolidations. Expect the index to trend lower towards the 1070 area in the coming days.
the Standard & Poor’s 500 Index failed in its third attempt to take out the formidable point of resistance near 1105. Staying below that level might herald more losses.
Tuesday’s massive selloff had pushed the S&P 500 index out of a month long consolidation pattern. So it’s possible that the index will extend its slide before meeting a strong zone of support at the January high of 1150.
based upon recent trading actions, the S&P 500 index may extend its advance before meeting a strong band of resistance between the 1250 and 1270 areas. However given that the index had gained more than 2 percents last week, the upward ride will be a lot less smooth than it used to be.
