S&P500 reached my measured technical target of 2,120 and rebounded. STI continues to be trapped in a range. What’s next?
Just to recap what I have mentioned on 9 Sep 2016 (see HERE), I wrote “The break below 2,157 on 9 Sep 2016 points to an eventual measured technical target of around 2,120. With this sharp plunge, RSI has declined from 59 on 19 Aug 2016 to around 32 on 9 Sep 2016. It is noteworthy that since Aug 2015, S&P500 typically staged a rebound when RSI reached around 27 – 32. Amid the sharp plunge in RSI, S&P500 is likely to find good support around 2,114 – 2,125 in this selloff. If this breaks, the next good support region should be around 2,089 – 2,092.”
–> The above was spot on. On 12 Sep 2016, S&P500 opened lower at 2,121 and touched …