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S&P 500 Futures undercut short-term target of 1,630; bounce to 1,690 possible

FXstreet.com (Barcelona) - The S&P e-Mini Futures continued their recent slide on Tuesday reaching 1,626.25 before closing at 1,628.25. Early Wednesday, a modest bounce is under way.

US stocks reacting to Syria fears; any hint of peaceful resolution could spark a rally

The S&P futures sit just above the previous downside target of 1,630 and are reading oversold on one of two commonly followed momentum oscillators. When things this oversold and near support / projections, sharp bounces are to be expected.

US investors / traders will likely continue to focus most of their attention Wednesday on the developments in Syria – with a mindful eye on other “minor” problems like US budget negotiations, Fed tapering plans and recent buds of an economic slowdown that have shown up in the data over the last few weeks.

Technical outlook for the S&P 500

As noted above, technicians point to the oscillators and proximity of the S&P futures’ price to projected support as evidence of a corrective bounce to come. These technicians are saying a bounce to 1,690 could take place on any hint of a peaceful resolution to the Syrian situation. However, short-term resistance will come into play at 1,667. Below Tuesday’s low of 1,626.25, support for the S&P futures come into play at 1,611.22.

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