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

The S&P 500 (SPX) was set to end the week flat to down against last Friday's close at time of writing. But that would not explain sufficiently the extreme price swings of the week, which saw an expansion in the range to new relative highs that then collapsed to flat. The index briefly retook the 2850 area only to fall back to the 2800 area earlier today. At time of writing losses were moderating with price last at 2819. For the coming week the big level on the upside to watch becomes 2850. A breakout above 2850 would face little resistance, putting the 2900 area into view. Equally, the 2800 area becomes the first significant round-number support. A break there would be bearish. A breakdown below 2800 would open up support in the 2799-2750 area. The Financials were the only sector to finish substantially lower on the week. The false breakout in the Financials (XLF) prior to the Fed announcement was notable and an area to watch as traders adjust to prospects of a flat to lower interest rate outlook.