US averages lead global stock indices back higher

  • The major US equity averages have seen an aggressive surge back higher this week, with US macroeconomic data continuing to stay strong, plus global relief as we move away from a No Deal Brexit.
  • Stock markets have shrugged off the earlier March selloffs last week, that wiped out notable supports and likely reflected short- and intermediate-term bullish fatigue from the very strong 2019 rallies.
  • The robust rallies this week have seen both the Nasdaq 100 and S&P 500 hit new 2019 highs, rejecting the recent selloffs as corrections.
  • Here we focus on the US broad benchmark average, the S&P 500 and the upside risks to prices.

S&P 500 E-Mini bullish extension threat with new 2019 high

A surge Wednesday to wipe out resistance and hot a new 2019 high above 2819.75, to build on Monday’s strong advance (above multiple resistances), plus Friday’s bullish daily Hammer candlestick pattern from the trend line from mid-January and new key support at 2722.0, to keep risks higher for Thursday.

The late January push above 2690.5 shifted the intermediate-term outlook to bullish.

For Today:

  • We see an upside bias for 2821.25; break here aims for key Q4 2018 targets at 2824.5 and 2831.25, then even maybe closer to 28409.5 and even 2850.0.
  • But below 2798.25 opens risk down to 2780.5, which we would look to try to hold.

Intermediate-term Outlook – Upside Risks: We see an upside risk for 2819.0/31.25.

  • Higher targets would be 2953.25 and 2600.0
  • What Changes This? Below 2722.5 shifts the outlook back to neutral; through 2680.75 is needed for a bear theme.

4 Hour Chart


Latest News

nikkei 225
Global equity index vulnerabilities

Global financial markets continue to react negatively to global trade war concerns. Asian, European and US equity averages have all rolled back lower this week into late May, damaging rebound effort made from mid-May. This sets the immediate risks lower and starts to resume the negative tone set during the significant selloff in the first … Continued

USDNOK and EURNOK mixed short-term outlooks

USDNOK retains a positive short-term tone within a broader, intermediate-term range. EURNOK has a negative short-term bias, also in a neutral, intermediate-term environment. This tells us more about EURUSD than anything else, that the risks for EURUSD are to the downside. USDNOK upside threat A resilient consolidation for much of May, digesting the later April-early … Continued

Dow Jones
US equity averages cling to a positive tone

A consolidation theme has emerged for the major US (and in fact European) equity averages over the past 1-2 weeks, with no significantly new bad news emerging from the ailing US-Sino trade negotiations. This has allowed equity markets to rebound and ease bear forces from the aggressive selloffs seen in the first half of May. … Continued

USDPLN breaking out for renewed bullish theme

Another push higher Tuesday and again into Wednesday, reinforcing the previous tentative breakout from the Ascending Triangle pattern above 3.8594 and 3.8644 resistances, leaving both short- and intermediate-term bull themes intact and aiming higher for Wednesday. The intermediate-term outlook is bullish, sustained by 2019 solid consolidation above the 38.2% Fibonacci retracement of the 2018 rally. … Continued

Forex Brokers in your location