Subscribe to RSS

S&P 500: Could US stocks hit fresh highs in early 2016?

It is the last full trading day of 2015 as the major global stock exchanges will either be shut tomorrow or close early due to the New Year’s Eve and will remain closed on the New Year’s Day. Normal trading will resume from Monday January 4. Understandably, the economic calendar is very quiet, although later on in the day we will have the latest US pending home sales and crude oil inventories data, which could offer some volatility. Tomorrow’s key US data will include the weekly unemployment claims and Chicago PMI. Clearly, there is not much fresh fundamental stimulus to provide direction for the equity markets, except perhaps the potential volatility in energy stocks should oil prices move sharply on the back of the US crude inventories data. Consequently, we are concentrating on the technical analysis side of things today.

Below, we are looking at the daily chart of the S&P 500. Though technically speaking, the index is still in consolidation, a closer inspection reveals some bullish indications. For a start, the bears have now had at least three failed attempts at trying to break the key support around 1995-2008 (shaded in light blue), an area which was formerly resistance. Relative to the last sell-off that occurred at the end of the summer, these latest futile attempts to move lower have also been shallow, with the index repeatedly finding good support around the 38.2% Fibonacci retracement level (~2008) of the up move from the August low. The shallow retracements suggest the bulls have more control.

Added to this, some of the lagging indicators are also now turning bullish. The 50-day moving average (2068) has already moved above the 200 MA (2060) again to create a so-called “golden crossover,” while the momentum indicator MACD has just formed its own “bullish crossover.” The golden cross is an important development for some momentum traders. This group of market participants typically only buy when an asset’s moving averages are in this order (of course, only when their other entry criteria are also met). The last time the S&P’s golden cross occurred was in early 2012, which saw the index climb steadily for the next few years until a “death cross” (i.e. 200 SMA < 50 SMA) was formed this August. Although we always warn that historical data is not a good indicator of future performance, the markets do tend to move higher when a golden cross happens. In the case of the S&P, this crossover had occurred some 22 times since 1970, according to Dow Jones. Of those occurrences, the index traded higher 19 times a year later. This would thus be the 23rd crossover since 1970. Will we see higher stock prices in 2016?

But the S&P has struggled to move higher from around these current levels so many times in 2015, so the bulls will now need to chop some wood if we are to see fresh all-time highs soon. The immediate resistance levels to watch are at 2080, followed by a bearish trend line around 2100/10. The previous peak was formed around 2137 in May. On the downside, the above-mentioned moving averages could provide some support upon re-test. Failure to do so, could see the index head towards the next potential support at 2045 and if this level breaks down then a revisit of the key support area between 1995 and 2008 could be a possibility in early 2016.

S&P 500

0 commentsback to post

Add your comment

Nickname:
E-mail:
Website:
Comment:

Other articlesgo to homepage

$3500 Free No Deposit Bonus in a Minute – Insta Forex

$3500 Free No Deposit Bonus in a Minute – Insta Forex(0)

Get $3500 Free No Deposit Bonus in a Minute from InstaForex no need to risk your own money if you have already got funds to earn more money. The $3500 Free No Deposit Bonus in a Minute from InstaForex is an exciting opportunity to start Forex live trading. Link:  $500 Forex No Deposit Free Bonus

Forex Circuits Live Trading Contest 2017 – Forex Time

Forex Circuits Live Trading Contest 2017 – Forex Time(0)

ForexTime latest Live Contest Win cash prizes from a $400,000 total prize pool. FX Circuits rewarding clients with real, withdrawable from a $400000 total prize pool.* Link:  FX Circuits Live Trading Contest Link:  Demo Forex Trading Contest Link:  Loyalty Cashback Promotions Link:  200% Withdraw able Cashback Rebates Available to:   New Clients only Contest Offer: ForexTime

$200 Forex Free No Deposit Pushup Bonus – FreshForex

$200 Forex Free No Deposit Pushup Bonus – FreshForex(0)

FreshForex finally launches long-awaited $200 Forex Free No Deposit Pushup Bonus Broker. With FreshForex new bonus every new client registered with us through special link within promotion period gets $200 to the trading account. Link:  $200 No Deposit Pushup Free Bonus Ending Date: 16 September 2018 Bonus Offer: $200 No Deposit Welcome Pushup Bonus for

$30 No Deposit Forex Welcome Bonus Campaign – Tickmill

$30 No Deposit Forex Welcome Bonus Campaign – Tickmill(0)

$30 No Deposit Forex Welcome Bonus Campaign to All new traders. $30 Free Forex Welcome Account is available to all new clients who expressed a wish for it during the registration process. Link:  Weekly Demo Race Trading Contest Link:  $30 Free Welcome Bonus Campaign Link:  Forex Monthly Live Trading Contest Available to: All new traders

300% Tradable Bonus plus Free Signals – Markets Yes

300% Tradable Bonus plus Free Signals – Markets Yes(0)

300% Forex Tradable Bonus Promotion and Risk Free Trade plus Forex Free Signals all New and existing clients. MarketsYes is offering all prospective clients deposit for up to 3000 USD/EUR/GBP a 300% Tradable Deposit Bonus. Link:  300% Tradable Bonus Promotion Link:  Risk Free Trade plus Forex Free Signals Available to: All New and existing clients

150% Binary Options Deposit Bonus Promotion – NordFX

150% Binary Options Deposit Bonus Promotion – NordFX(0)

Up to 150% Bonus for a First Time to binary options live trading account. For a perfect start, we offer you a 150% binary options bonus for a first-time $5,000 deposit. Link:  Up to 150% Bonus for a First Time Link:  100% Withdrawable Deposit Bonus Link:  55% Deposit Bonus Promotion Link:  DemoCup contest  prize fund

The Best Indonesian Forex Traders Party – FBS Inc

The Best Indonesian Forex Traders Party – FBS Inc(0)

The Best Indonesian Forex Traders Party 2017. Free tickets for any kind of transport are available only for Indonesian Forex Traders. Link:  The Best Indonesian Traders Party Link:  $123 Free Special Bonus Promotion Link:  100% Deposit Bonus Promotion Link:  $88.8 Lucky No Deposit Required Bonus (for Malaysian traders) Ending Date: 31 December 2018 Bonus Offer:

Win $100 Binary Options No Deposit Bonus – AYREX

Win $100 Binary Options No Deposit Bonus – AYREX(0)

Win $100 Binary Options No Deposit Bonus in just one hour $3600 total monthly prizes. No deposit required Bonus. Open to all AYREX demo account holders created automatically upon registration and used solely for contest participation Link:  Win $100 Binary Options No Deposit Bonus Link:  $30 Binary Options No Deposit Bonus Link:  30% Binary Options Deposit

25 USD Free Cash Bonus No Deposit Required – Xtrade

25 USD Free Cash Bonus No Deposit Required – Xtrade(0)

$25 Free Cash Bonus No Deposit Required plus $30 Account Verification Forex Free Cash Bonus to all eligible clients. Start Forex Trading with Xtrade Broker and Get a $30 plus $25 Free No Deposit Required  Bonus (T&C applied) Link: $25 Free Cash Bonus No Deposit Required Link: $30 Account Verification Free Cash Bonus Link:  60%

100% Withdrawable Deposit Bonus up to $5000 – NordFX

100% Withdrawable Deposit Bonus up to $5000 – NordFX(0)

Up to 150% Bonus for a First Time to binary options Account. For a perfect start, we offer you a 150% bonus for a first-time $5,000 deposit. Link:  Up to 150% Bonus for a First Time Link:  100% Withdrawable Deposit Bonus Link:  55% Deposit Bonus Promotion Link:  DemoCup contest  prize fund is $42000 Available to:

read more

Forex Featured Broker

Contacts and information

ForexDepositNews.com Forex Deposit Bonus, Forex No Deposit Bonus, Forex Live Contest, Forex Demo Contest, Free Forex Bonus Forex Brokers Review and Other All Forex promotions.

ForexDepositNews.com

Social networks

Most popular categories