Equity Indices Weekly (30 Oct ’16)
US equities remain trapped in range, with prices balanced above the 2119.12 monthly low of 12 September and 2115~ retracement.
A close beneath this area is looked for in the coming weeks, as studies weaken once again, with investor sentiment then turning bearish as the fall from the 2193.81 high of August extends. Subsequent multi-week losses will then target congestion around 2100 and the 2095 retracement, ahead of the 2070 retracement and further congestion around 2050.
Resistance remains at congestion around 2150 and should continue to provide a barrier into any immediate bounce as studies and sentiment continue to weaken. An unexpected break, however, will put focus back on congestion around 2180 and promote fresh range extension.
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