Global stocks stay in rebound mode, S&P 500 aims higher

Intermediate
  • A plunge lower last week with global share markets plummeting in the wake of very negative, US ISM Manufacturing and Non-Manufacturing data, plus the heightened tension from the WTO ruling in favour of the US over the EU.
  • However, the intraday rebound from last Thursday through Friday’s US Employment report and again to start this week has eased much of the negativity from last week’s selloff.
  • This keeps risks higher in the very short-term, ahead of the US-Sino trade talks that are due to resume later this week.
  • Here we focus on the US benchmark share average, the S&P 500.

S&P 500 E-Mini threat to the topside

A further rally Monday above 2953.25 resistance, to build on Friday’s strong recovery through key 2950.5 (that shifted the intermediate-term outlook back to a neutral range, switching the bias higher for Tuesday.

The early October strong recovery shifted the intermediate-term outlook back to a broader range, we see as 2995.0 to 2855.0.

For Today:

  • We see an upside bias for 2959.5 and 2965.5; break here aims for 2984/85, then maybe towards key 2995.0.
  • But below 2933.75 opens risk down to 2928/23.25, maybe 2911/10.

Intermediate-term Range Breakout Parameters: Range seen as 2995.0 to 2855.0.

  • Upside Risks: Above 2995.0 sets an intermediate-term bull trend to aim for 3025.75/3032.35, 3050.0 and 3095.5.
  • Downside Risks: Below 2855.0 sees an intermediate-term bear trend to target 2811.0 and 2777.0.

4 Hour S&P 500 E-Mini Future Chart

S&P 500 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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