Equity Indices Weekly (24 Sep ’16)
US equities have extended the bounce from the 2119.12 low of 12 September, with prices reaching congestion around 2180 before settling back.
Further gains are expected to prove difficult to sustain, however, as studies remain mixed and background readings continue to weaken, with critical resistance at the 2193.78 high of August to provide a strong barrier. A break, not seen, will turn investors outright bullish once again, with 2200, and higher, to then attract, as the rally from the January-February lows gains fresh traction.
In the coming weeks, consolidation should turn lower, with a close below 2119.12 confirming a pullback and opening up congestion around 2100 and the 2095 retracement. Further losses towards congestion around 2050 cannot be ruled out, as investors subsequently reduce exposure and adopt a bearish stance.
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