S&P 500 Index Futures Trading Chart INDEXSP: .INX
S&P 500 Index Trading Outlook 3-5 Days): Bearish at 3212 and 3220
I expected prices should stall out at 3215, so its right to sell into this Friday/Monday at that level for near-term traders.
But yet the trend has been so steadfastly resilient, that it’s going to be necessary to see SOME signs of weakness to pay much attention to anything outside of just a trading.
Prices managed to exceed the four-day consolidation to the upside yesterday, and will need a move back INTO the prior range to be concerned, <3203.
A break below 3191 would be more important.
The S&P 500 managed to exceed its recent four-day consolidation with an upward breakout on hourly charts, something which carried prices to levels just below important Gann-based resistance at 3212-5.
This looks important heading into Friday ahead of next week’s Christmas holiday.
Yet until/unless prices move back into the range, i.e. under 3203, trends remain very much bullish, but yet stretched. Undercutting 3191 would be worrisome into next week, as this would violate the uptrend from early December likely making the last week of December negative. While many take a longer-term view, those who are trading can see the hourly exhaustion at work, while prices are now overbought.
Thus, markets have a 24-72 hour window to reverse. Getting above would certainly be meaningful, and take sentiment to truly exuberant levels into 2020, at a time when many cycles turn down in January.
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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.
