SnP 500
As said in the previous post about SnP500 the index has broken above its resistance level of 1110 and is now headed towards 1130-1140 area. This area of 1130-1140 is a confluence of many resistance ,candle resistance marked in circle, resistance from 50 and 100 DMA,the 50% retracement of the recent fall from 1220 to1040 also lies at 1130-1135 which makes it a logical target as bull would like to test these resistances and try to break them. However this will be very difficult as resistances are strong and there is a negative divergence in the chart also the volumes in this rise have been on the decline. So the index can face profit booking near those levels. On the support side the 1st support is at 1105 and then at 1085 which is the 20DMA, a slide below these supports will lead to more fall and index can revisit the lows of 1040.A break past 1140 will spur more short covering and fresh longs in the index however that looks difficult as the volumes have been on the decline.
Traders would do well to be cautious and watch out for profit booking the US markets and hence also in the Indian markets.
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