S&P 500 Approaches February’s All-Time Highs - Forex News by FX Leaders
S&P 500

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

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

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.

S&P 500
September E-mini S&P 500 Futures (ES), Weekly Chart

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.

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