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FxWirePro:S&P 500 breaks major trend line support, good to sell on rallies

  • Major support – 2131 (trend line joining 1807 and 1989).
     
  • The index breaks trend line support and declined till 2120 at the time of writing. It is currently trading around 2125.
     
  • On the lower side, any close below 2130 will drag the index down till 2108 (Sep 12th 2016 low)/2090 (50% retracement of 1807.50 and 2193.4).
     
  • Short term weakness can be seen only below 2066 (200- day MA).
     
  • S&P500 minor resistance is around 2140 (support turned into resistance) and any break above targets 2154 (100- day MA)/2169.

It is good to sell on rallies around 2130-35 with SL around 2154 for the TP of 2108/2092

 

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