- In our article on Friday we underlined the bull theme for US stock indices, which continue their push higher.
- The S&P 500 is now poised to test its all-time high at 3397.5 from February 2020
- European equity indices are now helping the US share averages in their push higher, starting to resume upside pressures.
- Here we again focus on the US benchmark, the S&P 500.
S&P 500 day trade outlook: Eyeing the record high at 3397.5
Day trade update and view
A Friday-Monday prod higher to another new cycle high above 3351.0 resistance to 3363.5. to build on the steady, early August advance that saw a closure of the February bear gap at 3312.0-28.0, to extend bull forces from the mid-July rally through the key June cycle high at 3231.25 (for an intermediate-term bullish shift), to leave the threat to the upside for Tuesday.
Day trade setup
- We see an upside bias through 3363.5; a break here aims for 3375.0, maybe the record high at 3397.5 and 3400.0.
- But below 3322.25 targets 3300.5 and aims for 3278.75; below here possibly opens risk down to 3254.75.
S&P 500 intermediate-term outlook
The early July push above 3231.25 signalled an intermediate-term shift back to a bull trend.
- Upside risks: We see an intermediate-term bull trend to aim for 3397.5 and 3500.0.
- What changes this? Below 2983.5 shifts the intermediate-term bull trend to neutral; through 2923.75 to an intermediate-term bear trend.