The Key Bull Bear Pivot in the SP500 Oct 13

Oct 13, 2015: 10:05 AM CST

The US Stock Market (S&P 500) is facing a major challenge at resistance, and what happens here likely sets in motion the next swing and opportunities for the market.

Let’s highlight this level, note why it’s important, and update our targets from here.

Here’s the simple Weekly Chart of the S&P 500 Index:

We’ll keep it simple and focus our attention on the 2,020 level which is the current cross-over of the 20 and 50 week Exponential Moving Averages (EMAs).

Think of this as a harsh wall of resistance that is a “Make or Break” Pivot level for the index.

Simply stated, if price continues the rally and shatters the ceiling of resistance, then odds shift to favor a future rally that takes the index above prior highs.

Otherwise, we’re planning for a simple pullback or retracement against this level at the moment.

Here’s the Daily Chart with more detail:

In addition to the 2,020 Weekly Level, we see the 61.8% Fibonacci Retracement at 2,030.

The “post-Fed” spike high and reversal also took place off the 2,020 level.

If price falters and retraces down from 2,020, we’ll immediately target 2,000 (a Round Number Target along with the 50% Fibonacci Retracement).

However, a breakdown (steeper retracement) under 2,000 targets the 1,965 level again.

An “Alternate Thesis” bullish breakout beyond resistance opens a pathway first toward the underside of the falling 200 day Simple Moving Average (SMA) near 2,060 and then – into the future – toward the 2,125 all-time high level.

Note the current resistance into 2,020 and trade the reaction above or beneath this key pivot level.

Follow along with members of the Afraid to Trade Premium Membership for real-time updates and additional trade planning.

Corey Rosenbloom, CMT
Afraid to

Follow Corey on Twitter:

Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).


2 Responses to “The Key Bull Bear Pivot in the SP500 Oct 13”

  1. Major Challenge at Resistance Facing Stock Market Says:

    […] By Corey Rosenbloom […]

  2. Umer Says:

    The market seems to be pretty confusing stats, I believe we should always trade when we are certain of things, I believe that way we can get positive results. I trade with OctaFX broker; it is a very fine company with having superb conditions especially the cash back scheme on trades. This is sort of facility that we rarely get to see especially from a quality broker, but here it’s present and makes me really happy with everything that I do.