SnP 500
As said in the previous post about SnP 500 we needed to be careful about the +ve divergence on charts leading to sideways movement as well as flash rise , well the flash rise till 1045 did come but the rise could not be sustained and the SnP 500 gave away its gains to end lower yesterday.
The index during the last week has broken the crucial support of 1040 and has been resisted at the same level, a sign which is bad for bulls, in this fall the index has got support at 1010 odd level. This fall from 1045 shows how strong the resistance is.
As for the resistances and supports on the index they are as following.
1st support is at 1010 and 2nd one at 990-980. Support at 990-80 is an important support as below this the index can slide down till 950 and maybe till 900. Resistance for the index comes at 1045 which is strong resistance as can be seen from yesterday’s behavior; a close above this level can lead to a test of 1075 odd levels.
On the chart there is a +ve divergence developing which can lead to sideways movement, it also means that 990 can offer support in the coming days.
Levels to watch out on SnP 500 are.
1> 1010-990 on lower side, below 990 the index can slide down with greater momentum.
2> 1045, for bulls it is important that index closes above this level this will provide fresh strength to any possible up move.
In the view of above points and chart we can hope for a clear direction only on a close below 990 or above 1045.
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