- A surge higher for global stock averages over the past 24 hours, buoyed by rhetoric on progress between the US and China in the ongoing trade talks, plus the EU committing to an extension until 31st January 2020 for the Brexit process.
- Despite disappointing earnings from Google parent Alphabet after the close, US equity averages stayed firm, with the DJIA, Nasdaq Composite and S&P 500 all making new recovery highs for October on Monday.
- Moreover, the S&P 500, the broad benchmark hit a record high, aiming still higher through month-end and into mid-Q4.
A strong advance Monday through the prior key 3032.25 record peak to also overcome a target at 3041.0, to build on Friday’s push above the September peak at 3025.75, sustaining upside forces from last week’s rebound from 2982.0, keeping the bias higher for Tuesday.
The mid-October surge above 2965.5 set an intermediate-term bull trend.
- We see an upside bias for 3042.75; break here aims for 3050.0 and maybe 3063.5, even 3075/76.
- But below 3027.75 opens risk down to 3016.75, maybe even 3000.0/2998.75.
Intermediate-term Outlook – Upside Risks: We see an upside risk for 3050.0 and 3095.5.
- What Changes This? Below 2953.75 shifts the intermediate-term outlook back to neutral; through 2881.75 is needed for an intermediate-term bear theme.
4 Hour S&P 500 E-Mini Future Chart