Uploaded November 24th
This is a short analysis of the S&P 500 index for the immediate future.
Clearly, the average has broken below a long-term uptrend support line.
That portends less than desirable outcomes for long-term investors. However, traders can profit and gain from these intermediate swings.
The focus of this analysis is on the shorter term move.
In the very short term, I expect to see a bounce, suggested by the oversold full stochastic along with other oversold indicators!
As of this writing, the full stochastic oversold condition appears it would like rectification soon to a more bullish stance! The crossover could happen in the not too distant future. I’m looking for a bull signal crossover by midweek of next week, around the 27th or 28th. However, it may be a one day wonder. It’s unlikely we’ll see a sustained advance before mid-Dec.
Potential support levels on a continued drop are at the Oct low of 2603, the April low of 2553 and finally a full retest of the February low of 2532. I don’t expect the pullback to exceed the February 2018 low. However, should it continue then I’m looking for support at around the 2503 level.
If the S&P 500 index finds support at around the 2603 level and bounces, resistance may be seen in the areas of 2664, 2702 and 2755 on an advance.
I have a couple of days to watch as possible turn days (+/-1 day). They are Nov. 28th and Dec. 14th.
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