Major support for the S&P 500 lies here

By Julian Yosovitch

October 3, 2014 • Reprints

http://www.futuresmag.com/2014/10/03/major-support-for-the-sp-500-lies-here#.VC7cEJob3-s.twitter

Little change for the S&P 500 casue it to remain at the major support level of 1945 on Thursday.

We see that the market is trading near the lower zone of the medium term bullish channel around 1925, which is the key support level and last chance for bulls to react and to take the market back up.

Up to where? Possibily to the zone bewteen 1975-1980 initially, and then as high as 2020 points without discarding the largest increase toward the top of the medium-term bullish channel.

Only with the abandonment of the bullish channel, below 1925, will the S&P 500 will remain vulnerable to extend losses leading the market toward more depressed front values.

The bullish consensus is showing a bearish saturation after the big sell-off we've seen lately and this technical data can generate certain recoveries. And as long as the support is not broken down, we can still  speculate with further progress.

From the technical point of view, a close outside the channel will involve a sign of medium-term weakness with an expectation that further losses toward more depressed forward values wll follow. Lets take a look.