S&P 500 future joins the cash index with surge to record high

Intermediate
  • US President Trump fast tracking the use in the US for the COVID-19 plasma treatment and fast-tracking trials of the Astra Zeneca/ Oxford Uni vaccine 
  • US-China trade talks call between U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin with Chinese Vice Premier Liu He
  • These positive events for the global economy have reinforced the underlying “risk on” theme and here we focus on the future on the US benchmark stock index, the S&P 500.

S&P 500 future day trade outlook: Surge above the 3397.5 for a new record high

Day trade update and view

A strong advance Monday through the February record high at 3397.5, plus the psychological/ option target at 3400.0 and also 3417.75 target resistance and again higher overnight above the 3436.25 extension level, building on Friday’s dip and a firm bounce from 3356.75, re-energising upside forces from the entire August grind higher, to keep the threat to the upside for Tuesday.

Day trade setup

·      We see an upside bias through 3450/51 for 3472.75; a break here aims for 3489.25, maybe towards 3500.0.

·      But below 3409.5 targets 3393/90; below here possibly opens risk down to 3356.75 and 3344.75.

S&P 500 future intermediate-term outlook

The early July push above 3231.25 signalled an intermediate-term shift back to a bull trend.

  • Upside risks: We see an intermediate-term bull trend to aim for 3500.0 and the 3626/30 extension target area.
  • What changes this? Below 3319.5 shifts the intermediate-term bull trend to neutral; through 3190.25/88.5 to an intermediate-term bear trend.

6 Hour S&P 500 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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