Important update for S&P 500

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Last Wednesday morning, at the market open, we posted the following targets (note the weekly was updated later in the day).

Near-term Resistance = 2697 (weekly target of 2740)
Key Resistance = 2873
Immediate Support = 2585 (Note: this is the 150-DMA)
Near-term Support = 2535
Key Support = 2473

On Wednesday, the S&P 500 closed at 2696, a mere single point off our target of 2697. The weekly close was 2732, just 8 pts below our target of 2740. The market has followed our targets precisely, so we are looking for this pattern to continue. Here are the targets for the next week:

Near-term Resistance = 2770 (outside target of 2800)
Key Resistance = 2873
Immediate Support = 2589 (Note: this is the 150-DMA)
Near-term Support = 2535
Key Support = 2470

Watch for weakness and a break below 2700, 2650, and an initial test of the 150-DMA at 2589. We should see temporary support at 2535, but the key target low here is now 2470. Only a break above 2740, then 2770 would suggest that the pull back is over for now and a test of the January 26th high is in order.

Stay tuned!