Stocks rebound but bias stays lower – S&P 500 Forecast

Intermediate
  • A rebound effort for global stock averages to start this week after early weakness, driven back higher by the Fed announcement of the start of their corporate bond buying programme.
  • However, global share indices have been damaged by the selloff from last week after the downbeat outlook for the US economy from the Fed and by the rise in coronavirus cases in some US states, alongside new outbreaks in China and Japan.
  • Here we look at the futures contract for the US benchmark share index, the S&P 500 forecast for today and into the second half of June.

S&P 500 day trade outlook: Intermediate-term shift to a broader range

A Monday selloff to surrender key 2965.5, for an intermediate-term shift from bullish back to neutral, for a still more significant topping pattern and despite a strong rebound whilst below 3118.25 we hold onto a more negative short-term tone, to aim lower again into Tuesday.

  • We see a downside bias for 3060.25 and 3031.0; below here aims for 2995.5 and 2955/52, maybe 2923.75.
  • But above 3118.25 aims for 3145/48; above here opens risk up to 3180.75 and possibly the cycle high at 3231.25.

S&P 500 intermediate-term outlook

The mid-June push below 2965.5 signalled an intermediate-term shift to a broader range seen as 2760.25 to 3180.75.

  • Downside risks: Below 2760.25 sets an intermediate-term bear trend to target 2620.75, 2424.75 and maybe 2174.0.
  • Upside risks: Above 3180.75 sets an intermediate-term bull trend to target 3397.5 maybe 3500.0

6 Hour S&P 500 Chart

SP 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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