S&P 500 Index Futures Trading Chart – November 1, 2019
S&P 500 Index Trading Outlook (3-5 Days): Upside should prove limited
That said, trendline support on the S&P 500 Index INDEXSP: .INX held at 3020 so bulls still okay for now.
A push back above 3050 would argue for a potential last ditch move up to 3060-80.
It’s doubtful that 3100 occurs right away, so I think the rally should be used to lighten up for November volatility.
The S&P 500 bounced off support to close yesterday’s session.
I’ll use any hourly close back UNDER 3020 to think downside is gaining traction.
Conversely, if the S&P 500 can close back up over 3050, or even move intra-day above this level, this likely pushes prices up to the higher end of the range mentioned into next week before any settling. That would be 3060-80.
For now, it’s still likely that markets experience volatility in November and that view has not changed. But we’ll need to see SOME evidence of actual SPX deterioration sooner than later to reflect some of the damage being seen in IYT, XLF, XLI. Bottom line, upside should prove limited, and this stalling out looks to be happening in various things, just not SPX just yet to the extent where prices can retreat. Under 3020 should kick off the decline.
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Author has positions in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
