S&P is at key technical juncture. Current rally is testing formidable resistance at the 2500 zone. The longer the index stay below that level, the more vulnerable it is to lower prices.
the S&P is extremely oversold following recent decline. Like a rubber band, stocks tend to snap back to the mean if they have dropped too far from the “fair” value. With that said, if lower stock prices create some values for investors, then, given everything being equal, the market should be able to find some buyers. However, give the significant damage that had been done over the past weeks, upside reward could be limited
S&P has confirmed a breakout below the October’s bullish breakaway gap last week. The index could signal a downward trajectory, depending on how it closes over the next few days. Key support is defined by the important sentiment 2600 zone. A failure to hold above that level would unleash another torrent of selling
the fact that the S&P finally broke above the 2016 rising trend line, which it has been penetrated over the past few days, was pretty bullish. Nevertheless, the return of overbought conditions on intraday basis suggested that the market might need a short-term breather. Now S&P has to trade around Wednesday’s breakout point and test it. That’s what the rest of this week may be about