S&P 500 bull threat, poised at key resistance – S&P 500 forecast

Intermediate
  • In our last report on the S&P 500 at the end of September we highlighted the rebound for this index and global equity markets.
  • The Subsequent price action has seen strong recoveries across global equity markets, particularly in the US, driven by renewed hopes of a US economic relief package before the US election.
  • In addition, markets are becoming increasingly comfortable with a Biden victory and a potential clean sweep by the Democrats, as this would open the way for a more substantial relief package going forward.
  • Furthermore, a categoric Biden victory would ease the threat of an uneasy transition of power (Trump challenging the election result). This is a concern for traders and investors, remember markets hate indecision.
  • Here we once more look at the technical analysis for the US benchmark average, the S&P 500.

S&P 500 future day trade outlook: Upside risks still to key 3421.75/24.25 peaks

Day trade update and view

A Wednesday rebound from 3330.5 to reject the Tuesday’s late session setback and reinforce Tuesday’s probe up into the area defined by our key peaks at 3419.5/24.25, to 3421.75, to retain upside pressures from the latter September dip and bounce from above the 3282.0 support (from 3291.25), to keep the risk to the upside Thursday.

Day trade setup

  • We see an upside bias for key peaks at 3421.75/24.25; a break here aims at 3447.0/53.25, even towards 3484.25.
  • But below 3362.75 opens risk down to 3330.5 and possibly 3319.5 and even 3300.25.

S&P 500 future intermediate-term outlook

The early September sell-off below 3319.5 signalled an intermediate-term shift to a broader range seen as 3190.25/88.5 to 3484.25.

Downside risks: Below 3190.25/88.5 sets an intermediate-term bear trend to target 3105.25, 3000.0, 2983.5 and 2923.75.

Upside risks: Above 3421.75/24.25 sets an intermediate-term bull trend to target 3587.0, the 3626/30 extension target area and 3709.75.

6 Hour S&P 500 Chart

S&P 500 chart

Editor in chief

Steve Miley is the Market Chartist and 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 Mar... Continued

Comment on this video

Your email address will not be published. Required fields are marked *


Latest Related News

Global Markets Outlook 2021

Initial Parameters: Chart analysis is technical and taken from medium-term historical patternTechnical projections based on a twelve-month time horizonTargets set are based on the most recent, significant technical adjustmentAnalysis is based on Elliot Wave and Fibonacci techniquesTechnical analysis only guides; exogenous factors can shock any marketMarkets, being capricious, forecasts are subject to revisionFundamental analysis can be commissioned on requestEquity sector analysis is thematic United States… Continued

Minor Correction Underway – Market Turning Points

Cycles:  Looking ahead!  90-yr cycle – last low: 1932. Next low: 2022 7-yr cycle – last low: 2016.  Next low: 2023 Market Analysis (Charts courtesy of QCharts SPX-IWM weekly charts During the past week, IWM outpaced SPX and  retained its current relative strength.  According to my interpretation, this is bullish for the market, suggesting that only a minor top, at best, is being forecast by… Continued

New Short-term Target – Market Turning Points

Cycles:  Looking ahead!  90-yr cycle – last low: 1932. Next low: 2022 7-yr cycle – last low: 2016.  Next low: 2023 Market Analysis (Charts courtesy of QCharts SPX-IWM weekly charts Over the past few weeks, IWM has caught up with SPX by outperforming it.  There were signs this week that it may be slowing down as we approach the next short-term projection.  However, this does… Continued

Stocks stay very bullish into Thanksgiving – S&P 500 and FTSE 100 forecast

A firm tone seen for the main global stock indices this week, throughout November and also over the past 24 hours.The solid “risk on” theme is still been driven by:The ongoing Biden bounce, reinforced by the start of the transition of powerThe appointment of Janet Yellen as US Treasury SecretaryThe announcement of THREE very positive COVID-19 vaccine trial resultsLockdowns in Europe starting to work, with… Continued

Stocks dip but bull themes intact (S&P 500 and FTSE 100 forecast)

A dip across major global equity averages over the past 24 hours, but the underlying theme stays bullish from the very strong November rallies.The ongoing “risk on” theme has been driven by:The announcement from Moderna and Pfizer of very positive COVID-19 vaccine trial resultsLockdown measures taking hold in Europe, with falling/ plateauing in the numbers of new COVID-19 casesThe ongoing Biden bounceBut the market is… Continued

Forex Brokers in your location


SIGN UP

72% of retail investor accounts lose money when trading CFDs with this provider.


SIGN UP

74-89% of retail investor accounts lose money when trading CFDs with this provider.


SIGN UP

75% of retail investor accounts lose money when trading CFDs with this provider.


SIGN UP

76.4% of retail investor accounts lose money when trading CFDs with this provider.