SHORT-TERM (today and 5 days out)

For Friday, 2185.50 can contain session strength (assuming an open below), 2174.75 in reach and likely to contain initial selling, while breaking/opening below 2174.75 signals 2166.75 intraday where the market should bottom out into Monday. A settlement today below 2166.75 signals a test within several days of the 2140.50-47.75 region, able to absorb selling through the balance of the year and above which higher trade is expected over this time horizon. Upside Friday, pushing/opening above 2185.50 signals 2191.50, likely to contain initial strength, while pushing/opening above 2191.50 should yield 2203.00 intraday where the market can top out into Monday. Overall, a settlement today above 2185.50 should yield 2223.25 by the end of next week, able to contain next week’s highs and the level to settle above for yielding the targeted 2277.75 within 1-2 more weeks.

NEAR (2-3 wks) and LONG TERM (2-3 MO+)

The 2140.50-47.75 (2143.59-50.73 underlying index) region can absorb selling through the balance of the year, above which 2277.75 remains a 3-5 week target able to contain strength through January – possibly through Q1 (page 2). A daily settlement above 2277.75 signals 2323.50 within 3-5 more weeks where the SP-500 should top out into mid-2017. Downside, a daily settlement below 2140.50 (2143.59 index) indicates 2087.75 within 3-5 days, the market vulnerable to testing longer-term support at 1998.50 within several weeks – able to contain selling into January. A violation of 1998.50 signals 1834.00 within several months where the market should bottom out through 2017.

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