On The Fly: Weekly technical notes for S&P 500

The S&P 500 (SPX) is set to end down for the week at time of writing. At the last price of 2634.70, a key level to watch is at the 2665-2655 area which was previously support and is now resistance. A move back that level would mean that the second leg of the double top currently in progress may pause. That double top has been referenced in notes now for several weeks. As a reminder, downside potential over time for that pattern is to the 2490 area. An important support to watch next week is at the 2600-2580 area. This was the low bound zone for the sharp drop back in February. A successful test there might embolden the bulls and a failure could get bears to press even lower. For the week, sector breadth was very negative with deep losses. The only sector likely to finish in the green at time of writing is Energy (XLE) and that would be only a fractional gain. Sectors leading on the downside in descending order were Technology (XLK), Health Care (XLV), and the Financials (XLF).