Stocks shift to intermediate-term bearish! (S&P 500 forecast)

Intermediate
  • An aggressive selloff over the past 24-36 hours in riskier financial markets assets such as equities, with safe haven assets, notably bonds and gold rallying hard.
  • This was driven mounting fears regarding the spread of the coronavirus, with Europe impacted, notably Italy.
  • Stock averages were under bearish pressures across the globe with technical chart breakouts through key support levels.
  • Here we focus on the future on US benchmark average, the S&P 500.

S&P 500 Future day trade outlook: Bear shift through key 3303.25 reinforced 

A very aggressive plunge lower Monday from an aggressive bear gap (3312.0-28.0) through key 3303.5 key swing support (to switch the intermediate-term outlook to a bear trend), to push through further supports, nut holding at key 3212.75 (at 3313.75), and despite a rebound overnight to aim still lower for Tuesday.

  • We see a downside bias for 3241.75 and 3228.75; a break below aims for the key 3213.75/12.75 lows, then 3200.0, maybe even 3181.0.
  • But above 3266.0 targets 3275.75; above opens risk up towards 3293.5, possibly even to the now key bear gap at 3312.0-28.0.

S&P 500 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 3212.75 and 3181.0.

What Changes This? Above the bear gap at 3312.0-28.0 sees an intermediate-term neutral range and above 3397.5 a bull trend.

 4 Hour S&P 500 Future Chart

S&P 500 Chart 2020-02-25

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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