S&P Under Microscope
By examining the daily chart, we can see that the S&P index continues to move to the upside within upside channels that are controlling the index’s movement over the short and medium terms.
The main upside channel which started at the 665.75 bottom until now is still intact, while a minor upside channel over the short term started after the index touched the aforementioned main support for the main channel.
Accordingly, we should expect the index to continue its upside direction towards the next target at the 76.4% Fibonacci Retracement at 1368.00.
Here are some important factors that support our upside projection:
- The 50 moving average is still supporting the index’s upside wave over the short term.
- The channels mentioned above control the index’s movement over the short and medium terms.
- The Stochastic is also showing positive signs on daily basis.
- The small picture in the lower right corner is showing a typical technical upside model, where the neckline is located at the 1330.00 level, and once the index breaches that level, the way will be open for the index beyond the 1368.00 level to target the psychological level at 1400.00, which represents the full target for the upside technical model.
Overall, we expect the index to continue moving to the upside, nevertheless, we should note that breaching the 1275.00 support level will postpone the upside wave, and the index could drop towards the 1215.00 level.
Georgia Anderson` Financial News Network, trader, trader education, online forex, daytrader,forex currency, forex software, investors, forex trading, forex