30 Dec 2013
S&P 500 futures riding Santa’s sleigh higher into 2014; technical target 1861
FXstreet.com (Barcelona) - S&P 500 futures are hugging the flat line early on Monday as the skeleton crews around the world tread lightly in the off hours. There is every indication that the Santa Claus rally may continue Monday and Tuesday.
This may be hard for many to believe, but charts indicate early 2014 to be bullish
The prospect of interest rates and the DXY inching higher? Apparently not a problem for stocks based on recent action. The likelihood of an ugly, acrimonious election year in 2014? “Tell it to somebody else”, say the bulls. No, bullish analysts say the equity markets are overbought, but that any modest pullbacks are to be treated as buying opportunities. Tim Thielen of Sea Change Capital, LLC, says that only a draconian ramp-up in the Fed’s tapering program and subsequent sharp rise in rates would put and end to equities’ fund – that or something unexpected on the geo-political front. There are no indications of any such moves by the Fed, so Thielen remains optimistic on equities overall even as he recommends looking for pullbacks to buy stocks.
Technical outlook for the S&P 500 futures
The S&P 500 e-Mini futures contracts (@ES) have enjoyed an end-of-the-year rally that has eclipsed all resistance levels put forth by technicians. Now, the next projected target on the upside comes in at 1861 (from 1836 early Monday). Technicians say the “minis” are already overbought, so any test of that resistance would be an excuse for traders to take profits. They also note that the target for a pullback once resistance is tested comes in at around 1803 – 1805. At that point, they say they’d be buyers in anticipation of yet another move higher towards the next upside target of 1959.
This may be hard for many to believe, but charts indicate early 2014 to be bullish
The prospect of interest rates and the DXY inching higher? Apparently not a problem for stocks based on recent action. The likelihood of an ugly, acrimonious election year in 2014? “Tell it to somebody else”, say the bulls. No, bullish analysts say the equity markets are overbought, but that any modest pullbacks are to be treated as buying opportunities. Tim Thielen of Sea Change Capital, LLC, says that only a draconian ramp-up in the Fed’s tapering program and subsequent sharp rise in rates would put and end to equities’ fund – that or something unexpected on the geo-political front. There are no indications of any such moves by the Fed, so Thielen remains optimistic on equities overall even as he recommends looking for pullbacks to buy stocks.
Technical outlook for the S&P 500 futures
The S&P 500 e-Mini futures contracts (@ES) have enjoyed an end-of-the-year rally that has eclipsed all resistance levels put forth by technicians. Now, the next projected target on the upside comes in at 1861 (from 1836 early Monday). Technicians say the “minis” are already overbought, so any test of that resistance would be an excuse for traders to take profits. They also note that the target for a pullback once resistance is tested comes in at around 1803 – 1805. At that point, they say they’d be buyers in anticipation of yet another move higher towards the next upside target of 1959.