S&P 500 looks for its next move

After a strong rally for the S&P 500, it closed out the week at 1930 points.

The market has found strong support around 1900-1894 near the bottom zone of the bullish channel while the increase on Friday left a daily bullish reversal key.

In this case, as long as the 1894 level is not broken, we can still speculate with a stronger recovery back to 1940, and if that's hit, look to 1955, which I consider to be an important short-term resistance.

A break above those levels will enable new rallies that lead the market back to the previous maximum area at 1991 without rolling out a bullish continuation movement toward more ambitious front values.

Only with a direct break below 1894 will the bullish signals lead the market out of the bullish channel, leaving the S&P 500 vulnerable to extend losses back to  lower areas around 1865-1850 near the 200-day moving average.

 

 

 

Ed Note: Every day traders can listen to live, streaming squawk box commentary on FUTURESmag.com coming directly from the S&P trading pits in Chicago.


For our Spanish-language readers:

S&P 500 ¿Long o Short?

Fuerte avance del S&P 500 que cierra la semana en los 1930 puntos.

El mercado ha encontrado fuerte soporte en la zona de 1900-1894 puntos junto a la parte baja del canal alcista a la vez que la suba del viernes dejo una llave alcista diaria.

En este sentido, mientras los 1894 puntos no sean quebrados, aun podremos especular con una recuperación desde estas instancias y con chances de llevar al mercado rumbo a niveles superiores en torno a los 1940 punto primero y 1955 puntos luego.

El quiebre por encima de tal nivel habilitará nuevos avances capaces de llevar al mercado de regreso a los máximos previos de 1991 puntos, sin descartar una continuidad alcista rumbo a valores más ambiciosos para adelante.

Solo con el quiebre directo debajo de los 1894 puntos, las señales alcistas quedaran anuladas y el mercado abandonara el canal, quedando vulnerable a ampliar las bajas rumbo a los 1865-1850 puntos junto a la media de 200 días, al menos.

 

About the Author
Julian Yosovitch
Julian Yosovitch is a trader, and columnist for Ambito Fiinanciero (Argentina), Gestion (Peru), Saladeinversion.com, Inversion and Finanzas (Spain).
He holds a Bachelor of Business Administration and a Professor Master in Finance (UDESA). He is also a Capital Markets Specialist (UBA-IAMC) and Financial Markets Analyst - Ruarte´s Reports Trader. Follow his blogs here, and folow him on Twitter @julianyosovitch.
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