The S&P 500 Technical Analysis - A Specialist in Technical Analysis

For Sep, 26 2018

(Individual Chart Analysis)

This is a no-frills analysis.  It is not designed to look good, it is designed to be effective. 


Summary of the Technical Analysis for the S&P 500

(This takes into account the near term, mid term, and longer term charts)

Our combined analysis for Wednesday tells us to treat 2911 as inflection in the S&P 500 and the ability or the inability of the S&P 500 to hold this level will likely be a determining factor for all markets in the days ahead. 

The S&P 500 has broken midterm upward sloping support lines, and neutral channels have developed.  A decline towards neutral support, which is more than 1% lower than current market levels, would initially be expected, but the S&P 500 would need to break below 2911 for that to happen.

If 2911 breaks lower expect a decline towards 2882, but if 2911 holds as support in the S&P 500 expect the markets to all flounder in a sideways direction for the time being.

Initial intraday trading parameters for the S&P 500 exist between2911 - 2920
If 2911 breaks lower expect 2882
If2920breaks higher expect 2923
Otherwise expect2911 - 2920 to hold

If 2911 remains in tact as initial support, expect the market to increase to 2920. This reflects a tight near term down channel. However, and in line with our combined analysis, if 2911 breaks lower instead expect the market to decline to 2882 before it stabilizes again.


NEAR Term Analysis

Our combined near term analysis tells us that the markets are likely to begin the day flirting with lower levels.  The NASDAQ 100 and the Russell 2000 have tested levels of intra channel resistance, and those markets are stronger than the other markets on a near term basis.  The Dow Jones industrial average is actually in a downward sloping near term channel and the S&P 500 is close to support.  Treat 2911 in the S&P 500 as inflection.  If it holds expect the market to remain in a neutral pattern, but if 2911 break slower expect downward sloping channels in the S&P 500 like those that already exist in the Dow Jones industrial average.

NEAR Term Support for the S&P 500 exists at 2911

NEAR Term Resistance for the S&P 500 exists at 2923

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MID Term Analysis

Our combined midterm analysis tells us that the midterm upward sloping support lines in the Dow Jones industrial average and the S&P 500 are breaking lower slightly, and so long as that remains true the midterm chart patterns will suggest a decline.  However, the S&P 500 also has a neutral support line very close to current market levels at 2911, and that level will need to break lower as well for downside concerns to manifest.  Our combined midterm analysis tells us to expect the market to stall around current levels if 2911 remains intact as support, but we should expect momentum declines if 2911 break slower.

MID Term Support for the S&P 500 exists at 2911

MID Term Resistance for the S&P 500 exists at 2920

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LONG Term Analysis

Our combined longer term analysis tells us that the Dow Jones industrial average is breaking back below 26637.  This reversal is so far a bearish indicator, but this week is far from over and in order for an official break to happen the Dow Jones industrial average would need to end the week below 26637 as well.  Red flags have surfaced, they have been actionable, and if these breaks hold it will be bearish.

LONG Term Support for the S&P 500 exists at 2874

LONG Term Resistance for the S&P 500 exists at 3100

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