SP500 technical levels to follow in the short-term


A quick analysis to the daily chart of the SP500 (not shown) reveals its two main levels to check for the next sessions: as support, the key SMA200 average at near 2,800, also a psychological level. And as resistance, the 61.8% of its Fibonacci (at 2949.25) of its last pullback from August, as this level is probably the most important and followed retracement view by traders and investors. So, in the recent volatile behavior, it could reach some of these levels soon.

Now SPX is touching the 50% retracement, and overbought, with Stochastic above 90. But informed traders know that the Stochastic could stay many days, or weeks, above the level 80 due as the greed that involved traders in that point. Not the same happens in low levels, below 30, where fear is the main sentiment with peaks as its main pattern if panic comes. The 1-hour chart above shows it more clear.


Fibonacci retracements are important to draw after a complete pullback because Wall Street use them heavily, been 61.8% its favorite support. Check how difficult is for the SPX to overcome it.