S&P 500 Approaches February’s All-Time Highs

Taking into account the economic reopen, a coronavirus vaccine, and a dovish FED, there are solid reasons for optimism on Wall Street.

Shain Vernier•Monday, July 13, 2020•1 min read

Stocks Closed Bearish on the Day, but Bullish for the Week

By far, one of the lead financial stories of the past decade has been this year’s rebound in U.S. stocks. Following the COVID-19 panic sell-off of March, the bulls have been in complete control of the equities markets. As we move deeper into the year, the DJIA, S&P 500, and NASDAQ all appear ready to enter uncharted territory above last February’s highs.

This week marks the kickoff of Q2 earnings season. Industrial titans JPMorgan Chase, Delta Airlines, Johnson & Johnson, and Netflix are a few big names that will disclose their financials over the next several days. Consensus estimates predict a collection of dreadful Q2 figures stemming from last spring’s economic shutdown. However, there will likely be more than a few surprises. For now, investors are betting that things will turn out better-than-expected and are driving the DJIA DOW, S&P 500 SPX, and NASDAQ north.

February’s Highs In View For The S&P 500

The chart below is a look at September E-mini S&P 500 futures as of last Friday’s close. As you can see, prices have broken above the key 78% COVID-19 Retracement (3125.75). This is a key technical development and signals that this market is likely to test the All-Time High (3396.50) sooner rather than later.

Here are the important levels to watch over the intermediate-term:

Resistance(1): All-Time High, 3396.50
Support(1): 78% Retracement, 3125.75
Support(2): Bollinger MP, 2981.00

Overview: For now, a bullish bias is warranted for the S&P 500. Despite the recent growth in COVID-19 cases, investors appear at ease with the overall market dynamic. Taking into account the economic reopen, a potential coronavirus vaccine, and an exceedingly dovish FED, there are several strong reasons for optimism on Wall Street.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Open a FREE Trading Account

ABOUT THE AUTHOR See More

Shain Vernier

US Analyst

Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.