S&P 500: Key support at 2242-2250 - Natixis

Micaella Feldstein, Research Analyst at Natixis, see a bearish bias in the short-term in the S&P 500 index. She warns, that a break below 2242/50, would deteriorate significantly the technical patter. 

Key Quotes: 

“The daily volatility is reducing markedly and the daily MACD is no longer bullish, which should prevent a larger rally in the coming days. Besides, the weekly stochastic is in the overbought territory, which is also a major obstacle to further advance.”

“Against this backdrop, we don’t believe in a return above the 2304- 2307 resistances (rising trendline) and rather see a pullback to 2277 (9-day moving average) ahead of 2268 (daily Bollinger moving average) and 2242-2250 (daily parabolic). Caution will be in order as a drop below this last support would trigger a strong deterioration in the technical patter, flagging 2203 (weekly Bollinger moving average) as target.”

“The resistances are at 2295, at 2304-2307, at 2322 and at 2340-2347.”