Well, another week on the books and much is still left undecided. The equity markets have been in retreat and quite choppy, closing negative for the day and week. That said, key Fibonacci technical levels have created a ping-pong type atmosphere, giving investors a bit of whiplash. It’s notable, though, that major support around 1595-1600 still remains in tact. And that is one of the key technical levels that I will be watching next week.
Below is an updated short-term view of the S&P 500 (SPX). As you can see, the initial drop to 1597 found support (61.8 fib), ushering in a strong bounce back to the 61.8 Fib “up” retrace around 1650. Note that is were the market pivoted lower on Monday. On the downside, I am watching 1610 as a cluster of support. If broken, that would be a warning that 1595-1600 was about to be challenged again. Bears want to take out 1595, while the bulls want to take out 1650. Those are the bigger short-term levels to watch.
Trade safe, trade disciplined.
S&P 500 Technical Levels to Watch – SPX Chart
Twitter: @andrewnyquist and @seeitmarket
No position in any of the mentioned securities at the time of publication.
