The S&P 500 index was lower overnight due to light profit taking as it consolidates some of Thursday’s rally. Stochastics and the RSI are turning bullish signaling that sideways to lower prices are possible near-term. Closes above the 20-day moving average crossing at 921.27 are needed to confirm that a short-term low has been posted. If September renews this month’s decline, the reaction low crossing at 874.00 is the next downside target.
First resistance is Thursday’s high crossing at 917.50. Second resistance is the 20-day moving average crossing at 921.26. First support is the 10-day moving average crossing at 906.78. Second support is Tuesday’s low crossing at 884.30. The S&P 500 Index was down 3.60 pts. at 913.00.
Overnight action sets the stage for a steady to lower opening by the S&P 500 index when the day session begins later this morning.
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