S&P 500 futures: Expect a test of 2364 levels - Natixis

In view of the Micaella Feldstein, Research Analyst at Natixis, since the daily stochastic has turned around and as the weekly stochastic is overbought, they expect a test of 2364 (daily parabolic).

Key Quotes

“We’ll be careful as a break below this support would open the door for a stronger downside correction move towards 2337 (daily Bollinger moving average) and to 2304-2312 (9-week moving average).”

“These dips will be seen as corrective and won’t affect the underlying upside trend. The upside parallels on the weekly chart and the emergence of an upside bubble on the weekly chart indeed suggest a new round of rallies to 2394-2400 (daily Bollinger upper band) ahead of 2432-2444 (quarterly Bollinger upper band) and 2480-2489 (Fibonacci extensions).”