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

Intermediate
  • 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

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