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S&P 500 futures technically damaged by close below 1,670 Thursday

FXstreet.com (Barcelona) - The surprise sell-off that occurred in US stocks Thursday took the S&P futures below “correction support” of 1,670 – which opened the door to more downside in the near-term.

S&P futures oversold short-term – may bounce before heading lower

The nasty sell-off in the US markets Thursday took the S&P futures convincingly below their lowest possible “correction support” at 1,670 Thursday. What that means is that the US markets may bounce a little but will most likely grind down to 1,647 and possibly 1,629 (from 1,654 currently) before this (deeper) correction is over. The S&P futures ARE oversold, though, based solely on the Williams %R indicator, so corrective bounces are to be anticipated here.

Technical outlook for the S&P futures

Support for the S&P futures, as mentioned above, comes in at 1,647 and 1,629 in the very short-term. Short-term resistance will come into play at the breakdown point from Thursday at 1,670 with 1,686 above that.

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