S&P 500 Week of Dec 13th to Dec 17th Outlook
Recap of last week
Gap above the resistance area (yellow zone) and sell back down to test the zone from above. Yellow zone acted as support, leading to a quick run back up to current week high.
Next week outlook
Midpoint of last week will be important support area (yellow zone) going forward until the end of this year. The upside target established last week is now pushed higher towards 1260 area because 50% upside expansion price level of the current quarter initiation period has acted as a failed resistance this past week, thus a run towards 100% expansion price level is expected.
Any daily timeframe sell formation (e.g. DT, 1-2-3 sell) that breaks the yellow zone to start a down move, will lead to a selloff with initial target at the 7th daily level gap (red zone).