Tuesday, January 14, 2020

Annual Forecast for S&P 500 – 2020

S&P 500 chart (SPI:SP500) is really a protracted bull market. In spite of disturbing news from all over the worlds, the market has been making news lower highs and higher highs.

The historical data depicts fierce battles between bulls and bears between August and October 2019. The impasse ended in October that year and a protracted bullish trend was assumed, which has held out till now.

As shown in the chart, there is still more room for the market to go, given the 4 EMAs used for this analysis. The EMAs are 10, 20, 50 and 200. The color that stands for each EMA is shown at the top left chart of the chart.

It can be seen that all the EMAs are sloping upwards – confirming the current uptrend. In a foreseeable future, there may be retracements into the EMAs 10 or 20, which would be followed by further higher movements. As long as the EMA 50 is not breached to the downside, this uptrend will remain intact.

The only thing that can render the bullish outlook on S&P 500 invalid is a situation in which the EMA 200 is breached to the downside; and that is something that will take a very long time to happen.

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Trading realities: Trading realities 

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