- 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.
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