Equities march higher

  • Strong upside advances on Wednesday for the US and global stock indices into and after the FOMC Meeting Minutes from their January Meeting, as the Fed view of patience on interest rates was reinforced.
  • Furthermore, positive overnight developments regarding US-Sino trade negotiations have seen global share averages push still higher.
  • This has seen global equity averages in many instances move to multi-month highs and also new highs for 2019, reinforcing both the short- and intermediate-term bullish trends.
  • The risks into month-end and early March remain for further upside potential across global stock markets and here we look at the US broad benchmark index, the S&P 500.


S&P 500 bull trend reenergises

A solid advance Wednesday both before and after the FOMC Minutes and again overnight to another new 2019 high to 2798.0, building on the very strong, mid-February rally through 2763.0/63.75 resistances, sustaining both short- and intermediate-term bullish forces, aiming higher for Thursday.

The late January push above 2690.5 shifted the intermediate-term outlook to bullish.

For Today:

  • We see an upside bias for 27980 and 2800.0; break here aims for key Q4 2018 targets at 2819.0, 2824.5 and 2831.25 maybe even towards 2850.0.
  • But below 2773.75 aims for 2763/61 and maybe opens risk down to 2745.0, which would look to hold.

Intermediate-term Outlook – Upside Risks: We see an upside risk for 2819.0/31.25.

  • Higher targets would be 2953.25 and 2600.0
  • What Changes This? Below 2612.5 shifts the outlook back to neutral; through 2560.5 is needed for a bear theme.


4 Hour Chart


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Current Market Analysis
Euro breaks down, GBPCAD threatens upside

US Dollar Index holds support and rebounds EURUSD seeds multiple negative signals, downside risks GBPUSD sends buy signal GBPCAD sets up more bullish AUDUSD negative and USDCAD buy signal USDTRY and USDBRL surge

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