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S&P 500 bounces off key support
Kim Cramer Larsson
Technical Analyst, Saxo Bank
Summary: The benchmark S&P 500 index bounced off massive support around the 2,698 level Tuesday, but remains below its 200-day moving average.
The benchmark US S&P 500 index was hit by a massive sell-off from yesterday's opening bell. Buyers, seeing an opportunity to buy on the cheap, then lifted the index throughout the session with rising volume.
As can be seen from the daily chart below, the index bounced off crucial support at around the 2,698 level mentioned in our October 15 update.
Despite the buying surge, the index still closed below its 200-day simply moving average and remains under pressure, but I believe we will see buyers trying to push it back above this point over the next couple of days. A bullish move towards 2,800 is likely with resistance at 2,770.
A close below yesterday’s low at 2,691 is likely to trigger another massive sell-off.
As can be seen from the daily chart below, the index bounced off crucial support at around the 2,698 level mentioned in our October 15 update.
Despite the buying surge, the index still closed below its 200-day simply moving average and remains under pressure, but I believe we will see buyers trying to push it back above this point over the next couple of days. A bullish move towards 2,800 is likely with resistance at 2,770.
A close below yesterday’s low at 2,691 is likely to trigger another massive sell-off.
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