S&P 500 (technical)

S&P 500 Technicals: The rise to its Sep 2013 high of 1,729.86 was a minor weekly Elliott Wave 3. After that high, the index corrected down its weekly Wave 4 low of 1,646.47 (Oct’13). From that 1,646.47 low, the S&P 500 is extending upwards on its weekly Wave 5 move. The index made a new all-time high of 2,019.26 on 19 Sep’14. Support areas will be much weaker, while very heavy profit-taking at the resistance levels will be very wise. Most of its weekly indicators are negative (i.e. CCI, DMI, MACD, except Oscillator positive), with very obvious bearish divergence signals as well. 18 and 40 simple moving averages (SMA) depict a waning uptrend on its monthly chart. Its daily and weekly charts have turned into nasty downtrends. Despite the low interest-rate policy in the US since the GFC crisis, the SP500 has stalled at 2,019.26, well short of its first upside target of 2,095. A “Sell on Rallies” for the SP500 for the next fortnight, as the volatile October month of trading will be compounded by a zero-QE policy. Other info: Support S1/S2: 1,814/1,904 Resistance R1/R2: 1,906/ 2,019 Upside Target: 2,019.26 (reached) Downward period: 2 days to 2 months