S&P 500 to reach the 3310 trendline, pullback not expected – Charles Schwab


Ryan Frederick from Charles Schwab looks at the S&P 500 chart and though the index is above the consolidation zone again, the analyst doesn’t expect another pullback this week and thinks the index could reach the 3,310 level.

Key quotes

“The S&P 500 has moved back into consolidation mode again, which is frankly just fine with me. At the close Thursday (6/18) the index had gained back just 2.4% and it is about 9.6% below the 2/19 all-time high. I was comfortable with the rebound off the 3/23 lows, until it broke out of the consolidation zone on 5/26. At that point, it became too bullish and inevitably set up the pullback that happened on 6/11.”

“While the S&P 500 is currently above the consolidation zone again, I won’t be too concerned about another pullback until it approaches the trend line at 3,310 or so, though a pause at the 6/8 high (3,232) on the way, would not be surprising. For now, technical traders should continue to watch for the first downside support at the 200-day SMA (3,018).”

“It may be just a coincidence that the S&P 500 fell exactly 7.1% from 6/9/20 - 6/11/20 since it also fell exactly 7.1% from 6/15/09 - 7/10/09, before rebounding. It was certainly quicker this time, but then again, so was the bear market that preceded it. However, you look at it, so far 2009 has served as a reliable roadmap for 2020. Whether this pattern continues for the second half of the year remains to be seen.”

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

AUD/USD: The pair moves into a strong support area

The Australian dollar has been the worst hit during the recent bout of dollar strength. The market is heading to a pretty formidably zone at the 0.70 area. Adding to the strength of the psychological area is the 23.6% Fib retracement.

AUD/USD News

EUR/USD bounces from fresh lows, risk skewed to the downside

EUR/USD trades in the 1.1670 price zone, as demand for the greenback eased during US trading hours, following dismal US employment-related data.

EUR/USD News

XAU/USD catches a bid at $1850 but the retracement may not be over

Gold has been moving in a downward trajectory since the greenback strength kicked in on 1st September. Since then, the greenback has broken out of consolidation zones in EUR/USD and most of the other majors. 

Gold News

Bitcoin and Ethereum rebound strongly and are poised for further gains

Bitcoin confirmed a 4-hour bear flag that got almost no continuation and went straight into a massive move towards $10,700. Similarly, Ethereum also bounced back up, although its bounce is comparatively weaker, it is trading at $347. 

Read more

WTI: Oil sellers face rejection below $39.30 for third straight day

WTI fades the drop to sub-$39.30 levels for the third consecutive day. The repeated bear failure may entice buyers and yield a bounce. However, Sept. 18 high remains a level to beat for the bulls.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures