| 2019-01-11 14:13:39|
SPY, SPX 14:13 01/11 01/11/19
On The Fly: Weekly technical notes for S&P 500
The S&P 500 (SPX) is set to end the week substantially higher. As suggested in our note of last week, there was potential for the index to get to the 2600 area. It nearly did so this week, falling short by just a few points. Heading into the start of earnings season next week, the 2600 level becomes initial resistance, with the 2650-2700 area the next large band of resistance. With earnings on tap, and depending on the quality of outlooks, getting to that area would not be difficult. Support is at the 2550 area, as it was for the early part of the week. If earnings are a negative surprise, especially in terms of forward guidance, we could see a break back down to the 2500 area. It is important to keep in mind that a top-down view of the index will give way to bottoms-up one as reporting by companies accelerates in coming weeks. We could see an end to the relative lull in volatility that has characterized the post-Christmas trading period.
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