Global stock rebound falters – S&P 500 forecast

Intermediate
  • Global stock indices tried to rebound on Tuesday amid various countermeasures to stabilise the global financial markets by global Central Banks and governments.
  • However, this rebound has quickly stalled with moves back lower and share averages back close to the recent bear market lows.
  • This leaves the threat lower into today and this week, though traders need to watch out for the announcement of the US economic package, more details are due this week, possibly today.

S&P 500 E-Mini Futures day trade outlook: Bear threat, bounce rejected for now

A Tuesday recovery above 2510.0 and 2527.75 resistances, but then fading from below and the 2548.5/55.5 area, from 2542.75, to then surrender various supports as low as 2401.25, to retain bear pressures from Monday plunge to another new cycle low at 2350.0, and whilst below the 2448/59 area we see risks lower into Wednesday.

  • We see a downside bias for 2370.5 and then the new cycle low at 2350.0; a break below aims for the key late 2018 low at 2316.75, maybe even 2228.0.
  • But above the 2448/59 area targets 2493.75 and 2542.5; which we would look to try to cap; above opens risk up towards 2600.25, 2650.0 and maybe 2697.25.

S&P 500 E-Mini Futures intermediate-term outlook

The latter February plunge below 3303.5 signalled an intermediate-term bearish shift.

  • Downside risks: We see an intermediate-term bear trend to aim for 2316.75, 2228.0, maybe 2000.0.
  • What Changes This? Above 2916.0 sees an intermediate-term neutral range and above 3137.0 a bull trend.

Daily S&P 500 E-Mini Futures Chart

SP 500 E-Mini chart

Editor in chief

Steve Miley has 29 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Market Chartist, the Editor-in...continued

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