After tumbling 260 points in
4 days S&P 500 index managed to find support 1860 area having reached its’
lowest point of 1833 (the lowest level since October of last year). You can see
from the daily chart below that price of the security sits around 1980 level,
which was previous technical support from 2014 December through February of
2015. We may say that the price has already recouped more than half losses in
the last three days. It means we may see more resistance and roadblocks on the
road that may stop the index from rising further.
If you checked the hourly chart you would also
see that price bumped into 200 sma and was not able to overcome it today. A
bearish pin is also there on the hourly. On the other hand, intra day support
is also clearly seen at 1950 area, which acted as resistance for three days
(August 24, 25 and 26). When price fell to the area on the 27th (briefly)
a bullish hourly candle formed immediately. If the recent drop was a temporary
thing, we may expect to see more consolidation at current price levels and then
a rise back to 2040 (minimum), and maybe even to all time high.
