Stocks continue to capitulate (S&P 500 forecast)

Intermediate
  • Yet another aggressive selloff over the past 24 hours for global share indices as investors go into flight to quality mode, buying safe havens bonds.
  • This continues to reflect fears for the global economy and corporate earnings with the global spread of the coronavirus outside of China.
  • Global equity averages continue to plunge through support levels from Q4 2019.
  • Here we focus again on the future on US benchmark average, the S&P 500.

S&P 500 E-Mini Future day trade outlook: Bearish acceleration

A Wednesday plunge, the robust rebound (as we had warned of), then an aggressive selloff again into the close and once more overnight to new bear trend lows, to keep risks to the downside Thursday.

We see a downside bias through 3059.5 for 3037.5; a break below aims for 3020.5, then 3000/2998.75 and 2975.0, maybe even 2953.75.

But above 3092.25 targets 3107.5; above opens risk up towards 3117.0 and 3135.0, possibly even 3152.75.

S&P 500 E-Mini Future intermediate-term outlook

The latter February plunge below 3303.5 signalled an intermediate-term bearish shift.

Downside risks: We see an intermediate-term bear trend to aim for 3069.5, 3000.0 and 2855.0.

What Changes This? Above 3182.0 sees an intermediate-term neutral range and above 3260.0 a bull trend.

 4 Hour S&P 500 E-Mini Future Chart

S&P 500 Chart 2020-02-27

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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