S&P 500 Futures (H4): Double top continues to weigh; Retest of key 1754.4 level is likely

SP 500 futures (H4) confirmed a 5-week double top at 1846.5/1845.3 on the break below the 1809.8 low. Bears extended the drop from last Friday’s 1827.7 high to Monday’s 1767.0 low before consolidating. With the daily MACD and other studies still negative, a swing high remains favored under the resistance cluster including 1809.8 , 50% retracement of the 1845.3/1767.0 drop and the 50 day moving average (blue line.) A break below 1767.0 would resume the downleg towards the 1754.4/1738.1 support zone (16 Dec/7 Nov lows) which may contain losses. 

It would take renewed strength back above the 1809.8 resistance cluster to stabilize and reopen the 1846.5/1845.3 double top area.

 Resistance:

***1805.5/1806.0 (29 Nov/18 Dec range highs)

**1809.8 (13 Jan swing low) near 50% retracement of the 1845.3/1767.0 drop and the 50 day moving average (blue line.);

*1846.5/1845.3 (31 Dec/15 Jan highs);

 Support:

***1754.4 (16 Dec reaction low)

*1738.1 (7 Nov swing low)

*1716.5 (19 Sep high)

 

***very very strong level**very strong*strong