S &P—500 INDEX A TECHNICAL VIEW-2-5--2016

S &P—500 INDEX

CLOSED AT 2065.30 ON -29-4-2016.

                                                                           

SUPPORT:-2043.94/2038.20/2033.80/2022.49/2019.39/1993.26/1990/1969.25/1947/1904.78/1891/1871.91/1867.01/1820.66/1812.20/1810.10.

RESISTANCE:-2075.07/ 2099.89/2103.47/2111.05/2116.48/2119.59/2129.87/2132.82/ 2134.82.

(Figures in bold are important)

It is still looking good on the weekly and monthly chart but turned weak on the daily chart.  It had a vertical rise of 11 weeks from 1810.10 to 2111.05 but now it is correcting and showing weakness on the daily chart therefore further down correction from here looks imminent. Moving down, it will find support from its critical points for the year 2016 which are at 2043.94 & 2038.20 and then from its long term moving averages which are in the range of 2029.30---1995 on the daily chart as of now (it changes every day).Therefore as long as it holds 1995 on the closing basis the up move may be in place but one should get alerted below 2029.30. Please note that  sustained close below 1995 will trigger further fall and then it may find the next potential support from its long term moving averages on the weekly chart which are in the range of 1972---1801(it changes every day). So 1801 is a very solid support point and sustained close below it may trigger panic button which can take it to much lower levels.

It is important to mention here that, it made an all time high of 2134.72 on 20-5-2015 and thereafter in last eleven months it made five attempts to cross this high but every time it made a lower top at 2132.82/2129.87/2119.59/2116.48 and the recent top was made at 2111.05 on 20-4-2016 and it slipped from there, this was the fifth failed attempt, so it seems that it may have topped out for now and the on-going correction may be much deeper this time, so be alert and watchful and structure your trade keeping the points and range mentioned in the foregoing paragraph. Please note that to regain up momentum it has go beyond 2134.72 and sustain but even then the up journey may not be smooth because it will encounter huge resistance at 2169/2203 & 2230(it changes every day)points.

   

REMARKS:-The trend is up. But it is in correction mode now therefore long call should be avoided till it gives visible indication of correction completion.

  

Kindly note that make your cost your stop loss in favorable  trade and then trail it as the price move up/down to gain maximum profit and avoid losses. Use support and resistance levels as entry, exit, target and trailing stop loss points. DO NOT TRADE WITHOUT STOP LOSS.

Disclaimer:-The view expressed here are solely of the author and he is not at all responsible in any way for the outcome of the trade you enter based on the above view.

Note: Price stated here is of spot market.

Contact me for strategic guidance to enter and exit the trade.