As we begin the shortened trading week this week, the S&P 500 finds itself roughly in the middle of its recent rising range. Price action so far in 2015 has been lackluster, but support around the 155 day moving average, currently around the 1992 level, has thus far held up under multiple retests.
Such was also the case in October, when only on a third test did support finally break. So watch out this week for any reversals that take us down for another test of support at 1992; should we get that retest, we run a high likelihood of a breakdown this time.
Looking up, we have resistance firstly at the 50 day moving average around 2047 (call it 2050), and a major resistance zone, the “Death Zone” that has proven insurmountable in recent years, beginning around 2085 and extending up to 2115. A break above the 50 day would likely open up a move back into the Death Zone, though a move substantially beyond 2100 at this stage is probably beyond this market’s muster.
Good luck out there today, everyone.