Share indices aim at key resistances (S&P 500 forecast)

  • Once again, the major global stock averages went higher Tuesday, reinforcing the extremely strong gains in the week into the Easter holiday.
  • In fact, some of the major averages are now eyeing key resistance levels from the March plunge.
  • This equity markets advance continues to echo the “risk on” theme, driven by the plateauing, and in some instances decrease in Europe of new cases/ deaths from COVID-19.
  • Plus, from discussions for the easing of some lockdown restrictions in some major economic nations.
  • This has been reflected also in the Forex space, with the “risk currencies”; the Australian, New Zealand and Canadian Dollars continuing to rally against the US Dollar (itself currently viewed as a safe haven currency), see our article from yesterday on AUDUSD here.
  • Today we focus on the future on the US benchmark index, the S&P 500 future.


S&P 500 future trade outlook: Upside threat to key 2884.75

A firm extension rally Tuesday above Monday’s spike high at 2819.5 and notable resistance at 2839.25 from March, to retain upside forces from last week’s strong advance through various resistance levels after the surge above the 2635.75 prior recovery high, to keep risks higher into Wednesday.

·      We see an upside bias for 2846.0; a break above aims for the key 2884.75, maybe towards key 2884.75, even 2916.0 and 2948/51

·      But below 2780.5 targets 2752.5; through here aims for 2701.0/2698.5 and opens risk to 2653.5, maybe 2586.0.

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 2000.0 maybe 1802.5.
  • What Changes This? Above 2884.75 sees an intermediate-term neutral range and above 3137.0 a bull trend.

4 Hour S&P 500 Future Chart

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Your email address will not be published.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

Share average reverse higher, reject topping patterns – S&P 500 Forecast

The “risk off” theme that we discussed last week in an article on the FTSE 100 was rejected with a surging rally on Thursdays, shifting the short-term threats to the upside .Negative topping patterns (head & Shoulders and Double Tops) have been rejected, whilst stock indices are now pointing at the April cycle peaks.This has been driven by hopes of a COVID-19 vaccine, alongside positive… Continued

Stocks aims higher into key US Employment report – S&P 500 Forecast

A shift back towards a “risk on” theme this week, with share indices rebounding further overnight after US and China government officials talk trade.A key focus today will be on the US Employment report.Here we look at the positive bias for the future on the US benchmark stock average, the S&P 500. S&P 500 E-Mini Futures day trade outlook: Aiming higher A strong Thursday advance… Continued

Money Printing is the New Mother’s Milk of Stocks

My friend Larry Kudlow always says that Profits are the mother's milk of stocks. That used to be true when we had a real economy. But sadly, that is no longer factual because we now have a global equity market that is totally controlled by central banks.  To prove this point, let's look at the last few years of earnings. During the year 2018, the… Continued

Looking for a stock index rebound (S&P 500 forecast)

A move to a “risk off” phase on Thursday, possibly driven by month-end rebalancing, plus by negative comments from president Trump regarding China.Despite the selloff across global equity indices, we see rebound risks for today.Here we review prospects for the future on the US benchmark index, the S&P 500. S&P 500 E-Mini day trade outlook: Upside risks just intact, looking for a bounce A setback… Continued

“Risk on” theme aims stock indices higher (S&P 500 forecast)

Hopes regarding the plateauing of coronavirus cases and deaths in Europe and in some US States, alongside the anticipation of the re-opening of the economy in some European nations has sent global financial markets back into “risk on” mode to start the week. This has sent major European and US stock averages to the upper end of ranges that have dominated over the past 2-3 weeks.Here… Continued

Forex Brokers in your location