S&P fell below the key 1800 level on January 24, 2014 after having risen above this for the first time ever on November 22, 2013.
During the past week, there has been consolidation and prices have been testing support at 1765. This is a key support level as it also marks the 38% Fibonacci retracement of the up-leg from the October 9, 2013 low (1639.38) to the all-time high on January 2, 2014 (1845.75). The 100-day moving average is also currently providing support.
Falling RSI is a negative sign. If there is a break below 1765, the next level at 1740 is exposed. This is the 50% Fibonacci retracement level. Below this the 61.8% Fibonacci level at 1720 comes into play.
There are not enough signals to indicate a reversal at this point. The 50-day, 100- day and 200-day moving averages are all rising so it could be said that the bullish sentiment for the intermediate-term is still there. A move below 1700 could threaten the bullish scenario.
While prices are capped below the key 1800 level, a breach of this key resistance level will provide the catalyst for a move back up towards the all-time highs at the 1845 area.
S&P fell below the key 1800 level on January 24, 2014 after having risen above this for the first time ever on November 22, 2013.
During the past week, there has been consolidation and prices have been testing support at 1765. This is a key support level as it also marks the 38% Fibonacci retracement of the up-leg from the October 9, 2013 low (1639.38) to the all-time high on January 2, 2014 (1845.75). The 100-day moving average is also currently providing support.
Falling RSI is a negative sign. If there is a break below 1765, the next level at 1740 is exposed. This is the 50% Fibonacci retracement level. Below this the 61.8% Fibonacci level at 1720 comes into play.
There are not enough signals to indicate a reversal at this point. The 50-day, 100- day and 200-day moving averages are all rising so it could be said that the bullish sentiment for the intermediate-term is still there. A move below 1700 could threaten the bullish scenario.
While prices are capped below the key 1800 level, a breach of this key resistance level will provide the catalyst for a move back up towards the all-time highs at the 1845 area.
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