Bloomberg News

S&P 500 Futures May Advance, Mariana Says: Technical Analysis

October 31, 2011

Oct. 31 (Bloomberg) -- Standard & Poor’s 500 Index futures may return to a three-month high reached last week in the next few days, according to Mariana Capital.

“The immediate uptrend remains active, because the bullish gap hasn’t been filled,” Fabien Letheuil, a technical analyst at Mariana in London, said in a telephone interview. “The gap is caused by a strong difference between supply and demand in orders. From a technical standpoint, there is a bullish bias.”

Letheuil said the level of 1,288 is the resistance level that can be reached within the next three days, while the support level for that time period is 1,251. Analysts who track charts to predict securities’ movements look for support levels that may stop prices from falling and resistances that act as ceilings limiting gains.

“The upside potential isn’t huge, but we should retest Thursday’s high,” said Letheuil, who is “neutral” on the index in the next one to three months.

The futures contract on Oct. 27 reached 1282.60, its highest since July.

The S&P 500 Index is heading for its biggest monthly rally since 1974 after euro-area authorities pledged to increase the capacity of their rescue fund to 1 trillion euros ($1.4 trillion) and look beyond their borders for help in doing so.

In technical analysis, investors and analysts study charts of trading patterns and prices to predict changes in a security, commodity, currency or index.

--Editors: Tim Farrand, Peter Branton

To contact the reporter on this story: Adria Cimino in Paris at

To contact the editor responsible for this story: Andrew Rummer at

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