S&P Analysis for the Week of Nov. 2

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The sham of a GDP number gave false optimism on Thursday; the reality of the situation is more congruent with Friday's action. But let's look at the technicals:

Rallies on the S&P 500 in the upcoming week can be expected to experience resistance at 1042 and if that fails to hold then 1061. A rise beyond that in the current climate is unlikely, but is (small percentage) possible. A rise above 1070 would signal this market has plenty of buyers (or short coverings) and is good for another move higher.

If Monday trades through 1032 it is likely the market will continue lower, although this is not really an important technical level. A continued move below 1029 points to a test of former swing lows at 1020 and then beyond that 1005-1000.

Based on a daily chart trendline the uptrend was still intact until Friday. A down day on Monday indicates the trend has in fact been broken and we are due for a larger correction.

CFDs trading analysis by CFDsPros - Written by Cory Mitchell