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

As we head toward the close of the week, the S&P 500 (SPX) is off its worst levels but still flat to down. At the last price of 2607.23, next support is in the 2575-2550 band. Resistance is now at the 2650-2700 band. The trading range that swung between 2600 and 2800 with rapid moves since October has been broken by an essentially sideways action this week. In addition, a bearish flag pattern has emerged on the daily chart. This pattern, now active, has downside potential to the 2500 area. This pattern would, if the pattern completes, take out the 52-week low at 2532.69. The worst-performing sector for the week was the Financials (XLF), followed by the Industrials (XLI). The Utilities (XLU) lead on the upside, with Consumer Staples (XLP) coming in flat.