US equity futures at new record highs: S&P 500 forecast higher

Intermediate
  • A shift back to a risk on theme over the past 24-36 hours after last week’s shift to a risk off bias (after cautious and mixed signals from the US-China trade talks).
  • This week has seen positive rumours and more upbeat soundings, with a report overnight stating that the top-level negotiators had been on a call to hammer out the “phase one” trade deal.
  • This has seen global equity markets rebound Monday and move significantly higher overnight, with the major US equity futures, the Dow Jones Industrial Average, the Nasdaq and the S&P 500 all hitting record highs.
  • Here we spotlight the broad, benchmark index, the S&P 500, which is forecast for further gains this week and into December.

S&P 500: Day-trade prospects after a new record high

A strong advance Monday driven by a bull gap 3116.5-14.5 to overcome 3124/25 resistance and then overnight to spike above the recent record high at 3132.5 to a new all-time peak at 3145.0 and despite a setback from here, to set risks higher for Tuesday. 

  • We see an upside bias for 3138/39; break here aims for the new record peak at 3145.0 and 3150.0, maybe 3161.25.
  • But below the support gap at 3116.5-14.5 opens risk down to 3097.75 and maybe even 3090.75.

S&P 500: Intermediate-term outlook

The mid-October surge above 2965.5 set an intermediate-term bull trend.

Upside risks: We see an upside risk for 3250.0.

What changes this? Below 3063.5 shifts the intermediate-term outlook straight to an intermediate-term bear theme.

4 Hour S&P 500 E-Mini Futures – Dec ‘19 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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