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

Stop losing your money! 
Learn to trade with us!

24/7 signals + Webinars    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD drops below 1.1900 as dollar rebounds amid risk-aversion

EUR/USD is trading below 1.1900, retreating further from two-week highs of 1.1927 amid resurgent haven demand for the US dollar whilst the Treasury yields recover. Concerns about vaccines in Europe outweigh the Fed's dovish message.

EUR/USD News

GBP/USD struggles around 1.37 on dollar strength, Brexit and covid concerns

GBP/USD is trying to hold onto 1.37, trading near the March lows. The US dollar is rebounding the from dovish Fed-induced blow. Concerns about Britain's vaccine supplies and Brexit-related issues are weighing on sentiment.

GBP/USD News

XAU/USD trades as a function of yields, bounces at $1730 support

Spot gold (XAU/USD) prices have seen choppy price action this Friday, dropping from Asia Pacific levels in the upper-$1750s to lows around $1730, before recovering back to the mid-$1740s in recent trade. 

Gold News

Cardano’s Alonzo update might catalyze ADA price for 78% upswing

IOHK revealed Alonzo, the next protocol update for the Cardano blockchain. The upgrade will build on top of the recent releases like Mary, Allegra and so on to bring smart contract capabilities. ADA price falters but holds up as buyers eye a 78% bull run to record levels.

Read more

S&P 500: High high and away, it's the running of the bulls as PPI Freezes up

Up up and away as bulls push more record highs in equity markets. In the short term nothing, it appears, is clouding the picture. Or is it! The ten year yield reawakens with a fairly sharp rise back toward 1.7%.

Read more

Forex MAJORS

Cryptocurrencies

Signatures