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The S&P500 Technical Forecast, what is Moving Markets in the Week Ahead?

The S&P500 Technical Forecast, what is Moving Markets in the Week Ahead?

Market’s week ahead Overview, Key data releases, and S&P500 technical analysis.

Key Data Releases in the Week ahead

On Monday, October 26, markets follow the German IFO business climate index of October with the US Chicago national activity index of September and the SNB chair Jordan’s speech.

On Tuesday, October 27, investors will find out about the US durable goods orders of September and the CB consumer confidence of October.

On Wednesday, October 28, markets expect the Australian inflation rate in Q3, the US trade balance of September number, Bank of Canada rate decision, and the change in the US oil stockpiles.

On Thursday, October 29, investors will follow the bank of Japan interest rate decision, the German unemployment rates of October, the Eurozone consumer confidence index of October, the US GDP Q3 read with the initial unemployment claims. On the same day, traders will find out about the ECB rate decision then they will follow the ECB president Lagarde’s press conference.

On Friday, October 30, markets check the Japanese unemployment rate of September, the German GDP of Q3 with the Eurozone inflation numbers of October. Additionally, markets expect the Canadian GDP number of August and the US PCE index numbers of September with the Michigan consumer sentiment index of October.

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S&P 500- Daily Price Chart (April 8 – October 25, 2020)

On October 12, the S&P500 coiled for a possible downside move. The price developed a double top pattern where the neckline resides at 3197.7. A break below this level could send the price even lower towards 2790.3 in the short to mid-term.

A daily close below the low end of the current 3587.4 - 3346.9 trading zone could encourage bears to press towards the aforementioned neckline at 3197.7 (the September 24 low).

On the other hand, a daily close above the high end of the zone at 3587.5 could send the price to a new all-time high and push towards a new psychological level of 3700.0.

S&P 500- Four Hour Price Chart (September 23 – October 25, 2020)

On October 14, the S&P 500 corrected lower and created a lower high at 3523.5. The price started then a downward trend creating lower highs with lower lows. On October 21, the index provided another bearish signal as traded below the bullish trendline support originating from the September 24 low at 3197.8.

In conclusion, while the bearish bias is still in place a break above the aforementioned trendline indicates a weaker downside momentum. Thus, a break above 3480.5 may trigger a rally towards the high end of the current trading zone discussed above on the daily chart, while a break below 3295.5 could send the price even lower towards 3197.7. As such, the support and resistance levels underlined on the chart should be kept in focus.

Maklumat/penyelidikan ini disediakan oleh Mahmoud Alkudsi dan tidak mengambil kira objektif pelaburan tertentu, keadaan kewangan atau keperluan khusus individu. Penganalisis penyelidikan bertanggungjawab terhadap kandungan laporan penyelidikan ini, samada sebahagian atau keseluruhannya, memperakui bahawa pandangan mengenai syarikat dan sekuriti mereka yang dinyatakan dalam laporan ini jelas mencerminkan pandangan peribadi dan pedagang bertanggungjawab sepenuhnya ke atas risiko mereka sendiri.

Penyelidikan yang disediakan bukanlah pandangan JME Financial Services (Pty) Ltd ataupun undangan untuk melabur dengan JME Financial Services (Pty) Ltd. Penganalisis penyelidikan juga memperakui bahawa tiada sebahagian daripada pampasannya, adalah, atau akan, secara langsung atau tidak langsung, berkaitan dengan cadangan atau pandangan tertentu yang dinyatakan dalam laporan ini.

Sehingga tarikh laporan diterbitkan, penganalisis penyelidikan dan pasangannya dan/atau saudara-mara yang bergantung kepada penganalisis penyelidikan, tidak memegang kepentingan dalam sekuriti yang dicadangkan dalam laporan ini (“kepentingan” termasuk pemilikan langsung atau tidak langsung terhadap sekuriti).

Penganalisis penyelidikan tersebut bukanlah di bawah JME Financial Services (Pty) Ltd. Anda digalakkan mendapatkan nasihat daripada penasihat kewangan bebas mengenai kesesuaian pelaburan, di bawah penglibatan berasingan, seperti yang anda anggap sesuai dengan objektif pelaburan tertentu anda, keadaan kewangan atau keperluan kewangan tertentu sebelum membuat komitmen untuk melabur.

Undang-undang Republik Afrika Selatan akan mengawal sebarang tuntutan yang berkaitan dengan atau yang timbul daripada kandungan maklumat/ penyelidikan yang disediakan.