S&P 500 poised for bigger bear signal (S&P 500 forecast)

  • A further plunge in global equity markets this week as we highlighted on Tuesday with our article on the DAX here.
  • After Monday’s plunge and then a bounce Tuesday, the “risk off” theme has fully resumed through midweek.
  • This is being driven by a combination of:
    • Surging European and UK COVID-19 cases
    • New lockdown/ restriction measures in the UK and throughout Europe
    • Economic data turning more negative, most recently Wednesday’s global Market Flash Purchasing Managers Index (PMI) data
    • US election concerns starting to increase with growing tensions and indecision
    • Tech stocks still correcting from overbought and possibly over valued
  • Below we look at the technical analysis view for the US benchmark average, the S&P 500, which is setting up for a far more negative signal.

S&P 500 future day trade outlook: Downside threats resume for bigger bear shift below key 3190.25/88.5

Day trade update and view

A rebound Tuesday-Wednesday above resistances at 3289.5 and 3306.0/09.5, but capped by 3326.26 (at 3319.75) to then revert lower and push below Monday’s low and further support at 3217.25/12.5, to resume negative forces from Monday’s plunge that wiped out numerous supports (at 3280.75/78.75, 3254.75 and 3234/33), plus from the earlier September sell-off, to keep the threat lower for Thursday.

Day trade setup

  • We see a downside bias through 3210.0 for key 3190.25/88.5; a break here aims for the 3217.25/12.5 swing lows and maybe key 3190.25/88.5.
  • But above 3240.0opens risk up to 3287.25 and possibly even the 3319.75/26.25 area.

S&P 500 future intermediate-term outlook

The early September sell-off below 3319.5 signalled an intermediate-term shift to a broader range seen as 3190.25/88.5 to 3484.25.

Downside risks: Below 3190.25/88.5 sets an intermediate-term bear trend to target 3105.25, 3000.0, 2983.5 and 2923.75.

Upside risks: Above 3484.25 sets an intermediate-term bull trend to target 3587.0, the 3626/30 extension target area and 3709.75.

6 Hour 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Your email address will not be published.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

Surging COVID-19 cases + No US relief package = Stocks vulnerable

Macroeconomic/ geopolitical developments COVID-19 cases continue to surge across Europe and in the US too.In European and the UK this has surge in cases and now hospitalisations has seen regional and national lockdown measures become more severe.Democrats and Republicans have not reached agreement on a new COVID-19 economic relief package, with diminishing chances of any deal before the US election on Tuesday 3rd November.Joe Biden… Continued

Stocks setting up for a plunge – S&P 500 and FTSE 100 forecast

A significant move lower for global stock averages over the past 24-36 hours, as markets are moving even more towards a “risk off” theme.This is being driven by:Spiking COVID-19 cases in Europe, alongside more severe lockdowns.Rising levels of COVID-19 in the US.Fading hopes of a US economic relief package ahead of the US election.In this report we will review the technical analysis outlook for both… Continued

Stocks dip, but looking for a bounce (S&P 500 and FTSE 100 forecast)

A slight dip lower for global stock averages over the past 24-48 hours, as the “risk on” theme has wobbled.This has been due to fading hopes of a US economic relief package ahead of the US election.Here we look at the technical analysis for the US and UK benchmark averages, the S&P 500 and FTSE 100 S&P 500 future day trade outlook: Still bullish, despite… Continued

Short-term Top Expected – Market Turning Points

Cycles:  Looking ahead!  90-yr cycle – last low: 1932. Next low: 2022 7-yr cycle – last low: 2016.  Next low: 2023 Nest of short-term cycle lows on about 10/15-20 Market Analysis (Charts courtesy of QCharts SPX-TRAN- IWM – daily charts In an unusual display of strength, last week IWM made a new high and surged ahead of SPX to join TRAN in displaying short-term relative… Continued

S&P 500 bull threat, poised at key resistance – S&P 500 forecast

In our last report on the S&P 500 at the end of September we highlighted the rebound for this index and global equity markets.The Subsequent price action has seen strong recoveries across global equity markets, particularly in the US, driven by renewed hopes of a US economic relief package before the US election.In addition, markets are becoming increasingly comfortable with a Biden victory and a… Continued

Forex Brokers in your location


79% of retail investor accounts lose money


79,3% of retail investor accounts lose money


74,9% of retail investor accounts lose.


75% of retail investor accounts lose money when trading CFDs with this provider.