Risk on sees equities soar (S&P 500 forecast)

Intermediate
  • Rightly or wrongly, but waning concerns regarding the spread of the coronavirus have seen the “risk on” theme full resume this week.
  • This was after a setback in global stock indices and a move into safe havens last Friday after the US Employment report (despite it being stronger than anticipated).
  • Monday has seen the major global stock markets post healthy gains with further advances overnight.
  • The major US share averages have hit new record highs and here we focus on the future on the broad US benchmark index the S&P 500.

 

S&P 500 E-Mini Futures day trade outlook: New record high!

A Monday morning selloff down to 3303.5 (then a bounce), but then another setback and rebound from above our 3312.75 support (from 3314.75) to then surge into the close and again overnight to a new record high (at 3364.75), to resume bullish forces from last Wednesday’s surge through the prior cycle high at key 3337.5 (for an intermediate-term bullish shift), to switch the threat back higher into Tuesday.

  • We see an upside bias through 3364.75; a break above aims for 3375.0 and 3389.75, maybe 3400.0.
  • But below 3355.25 quickly targets 3349.25 and maybe 3342.0.  

Intermediate-term outlook

An early February surge above 3337.5 signalled an intermediate-term bull trend to aim for 3389.75 and 3500.0.

What changes this? Below 3288.5 sees an intermediate-term shift to neutral and below 3212.75 to bearish.

4 Hour S&P 500 E-Mini Futures 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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