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

  • 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

Comment on this video

Your email address will not be published. Required fields are marked *

Latest Related News

Stock averages recoveries fading (S&P 500 forecast)

Global share indices tried to advance further on Tuesday into the end of quarter (end of the Japanese fiscal year) but have been unable to resume the bullish themes seen through latter March, last week.The subsequent hesitant setback over the past 24 hours may have reflected recovery fatigue, but also potentially a conclusion to end of month/ quarter, rebalancing flows.We see the short-term threat for… Continued

Next Cycle Low ~4/7

The first countertrend rally took SPX to its 200-DMA  where it was repelled. IWM did not fare nearly as well and remains with considerable relative weakness to the SPX.  There may be some additional trading within the range established this week, with the next short-term low due ~4/8.  An intermediate low is not due until mid-year. SPX daily chart Last Monday SPX made a low… Continued

Stock indices build on bases with firm recoveries (S&P 500 focus)

Global share indices advanced further Thursday, as we had flagged in our report on Tuesday with the US Senate passing the $2 trillion economic relief bill, which moves to the House on Friday.Stock averages have pushed up through numerous resistance barriers, to build on bases and confirm short-term recovery themes.We still do NOT see the conclusion to the bigger bear market established in March, but… Continued

Stocks bounce but still heavy, with US economic relief bill stalling – S&P 500 forecast

Global stocks averages have rebounded overnight into Tuesday, despite the US Senate stalling on the $2 trillion economic relief billAsian and European stocks have advanced through resistance levels, BUT are far from bullishUS equity futures, however, remain under negative pressures having gapped lower to new bear cycle lows onHere we focus on the future on the US benchmark average, the S&P 500, which has underperformed… Continued

Minor Cycle Bounce – Market Turning Points

Point & Figure overview of SPX Long term trend:  Although I do have a potential lower target in mind, I will wait for some confirmation before disclosing it. Intermediate trend:  Maximum 2170 this phase.  Larger drop into mid-year after relief rally. Important  cycles followed I follow only a few cycles that I consider reliable in my analysis.  This is complemented by the analysis of Erik… Continued

Forex Brokers in your location