Stocks strong, bull threats – S&P 500 and FTSE 100 forecast

Intermediate
  • Last week we headlined our report “Shares surge, looking for more” and the markets have certainly delivered more, lots more!
  • The ongoing “risk on” theme has been driven by:
    • The announcement from Pfizer of a very impressive 90% success rate for their CIOVID-19 vaccine
    • Confirmation of a Joe Biden victory
    • A probable split Congress, with the Republicans likely holding the Senate
    • Plateauing numbers of cases COVID-19 cases in Europe, as new lockdown measures take hold
  • However, we must remember that we still have the threat of significantly rising COVID-19 cases in the US.
  • In this report we analyse both US and UK benchmark share indices with S&P 500 and FTSE 100 forecasts.

S&P 500 future day trade outlook: Bull theme, pointing higher 

A Wednesday rebound to overcome 3562.75 resistance, building on Tuesday’s dip and a bounce from just below our 3511.25 support, from 3506.5, plus Monday’s extremely aggressive surge through multiple resistances including the key 3541.0 level (for an intermediate term shift to bullish), to also overcome the prior record peak at 3587.0 to a new all-time high at 3668.0, to leave the threat to the upside Thursday.

Day trade setup

  • We see an upside bias for 3585.25; a break here aims for 3622.75, 3668.0 and maybe 3688.5.
  • But below 3538/31 opens risk down to 3506.5 and possibly 3456.75.

S&P 500 future intermediate-term outlook

The early November push above 3541.0 signalled an intermediate-term shift to a bull trend.

  • Upside risks: We see an intermediate-term bull trend to aim for extension targets at 3709.75, 3775/76 and 3866.5.
  • What changes this? Below 3319.0 shifts the intermediate-term bull trend to neutral; through 3226.0 to an intermediate-term bear trend.

8 Hour S&P 500 Chart

sp 500 chart

FTSE 100 day trade outlook: Bull extension, aiming still higher for key 6512.5

Another surge above 6294, key barriers at 6302.5/10.5, then 6346/50 and to just stall below our notable 6384 level at 6378, to build on Tuesday’s dip and a rebound from the 6083 level plus Monday’s extremely aggressive surge through critical resistance at the 6012.5 level (for an intermediate term shift to bullish), to keep the threat higher for Thursday.

Day trade setup

We see an upside bias for 6350.5 and 6378/84; a break here aims for 6439, 6465/66 and maybe key 6512.5.

But below 6265/64 opens risk down to 6222 and possibly 6157.

FTSE 100 intermediate-term outlook

The early November push above key 6012.5, signalled an intermediate-term shift to a bull trend.

  • Upside risks: We see an intermediate-term bull trend to aim for 6302.5/10.5, 6512.5 and 6871.5, maybe 7000.
  • What changes this? Below 5632 shifts the intermediate-term bull trend to neutral; through 5463 to an intermediate-term bear trend.

Daily FTSE 100 Chart

ftse 100 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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