Shorter-term buys signals for S&P500

The S&P500 is set to climb higher despite the recent correction, according to Ari Wald at Oppenheimer. The low level of the VIX should also mean that this correction is more muted than previous corrections both in terms of magnitude and duration.

Major support now exists at 1900 extending to 1850, however, a renewed rally may see resistance at 1950, the level of the 50-day moving average. Other bullish signals include a decline in extreme investor sentiment suggesting a fall in possible contrarian positions, a low signalled by the put/call ratio, and a fall in the number of stocks above their 50-day moving average, indicating internal exhaustion.