S&P 500 Rally Faces First Big Test – 2862

Mark Newton
s&p 500 index trading analysis may 15 downtrend resistance correction _ investing news image
S&P 500 Index Futures “daily” chart. INDEXSP: .INX

S&P 500 Trading Outlook (3-5 Days): Bearish

Poor risk/reward with prices up to near resistance, but not over.

Until trendline broken, it’s right to expect a stall-out and pullback.

A close over 2862 tilts the bias to bullish for a larger rally.

THE BOTTOM LINE: Trends are bearish and momentum still hasn’t gotten sufficiently oversold to suggest lows are in place.

While volume was very heavy on the downside, which often can occur close to lows after an extended decline, it looks right to stay defensive until prices reach down to 2785 or manage to rise back up over 2862 on a close.

As written about last week, downside should be limited to 2775 to 2785.

If you have an interest in seeing timely intra-day market updates on my private twitter feed, please follow @NewtonAdvisors.  Also, feel free to send me an email at info@newtonadvisor.com regarding how my Technical work can add alpha to your portfolio management process.

Twitter:  @MarkNewtonCMT

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.

NOT INVESTMENT ADVICE – PLEASE READ INVESTMENT DISCLAIMER.