23 Dec 2013
S&P 500 futures continue upside march to start the week; 1827 next target say Elliott Wavers
FXstreet.com (Barcelona) - US equity futures (SPX) are trading higher to start the new week – continuing the new trend started after the short-term bottom was set during last Monday’s session. Elliott Wave technicians project 1827 as the next measuring post.
Fundamental analysts pulling their hair out over one concern or another economically
The key gauge for the US equity markets in the futures arena – the S&P 500 futures – have roared off of the lows set last Monday at 1760 or so. The reaction to the Fed’s tapering / comments tells the world the Fed’s medicine will be chased with sugar at every turn to ensure markets do not react to harshly to their moves.
Their goals in tapering are simple – to put some arrows back into their quiver so that the next time real economic or systemic trouble exists that they will have them to use AND to try to instill a sense of normalcy in the markets. They can jawbone all they want about the unemployment rate, but in their heart of hearts, they have to know that decreasing unemployment is coincidental with the QE activities. They may certainly be concerned about things – the domino effect to be experienced in the US resulting from the implementation of the Affordable Care Act being first among those concerns.
What the bears on the US economy and the markets seem not to realize is that the equity markets have little correlation with the economy itself historically. Rather they are clearly linked – although perhaps not perfectly correlated – with the monetary and fiscal policies of the local country. Right now in the US, monetary policies – despite the token tapering announcement – have to be considered very accomodative. The fiscal policies are a bit of a mess with all of the mixed messages coming from Washington, DC – including the very scary black hole of unknown consequences surrounding the A.C.A.’s implementation. So, it has to be assumed that the monetary policies will remain at least fairly accomodative until much of the uncertainties in DC are addressed adequately. If that is the case, then it would stand to reason that the equity markets will remain at least fairly friendly to investors during that time.
Technical outlook for the S&P 500 futures
Elliott Wave technicians have laid out a map that has the S&P futures eventually making it up to 1897 in the very near futures. However, they say that a stop at 1827 may occur first – where a pause / correction will take place before the next thrust higher towards 1897 takes place. Support for the S&Ps comes in at 1810 (the previous ST peak) and then down at last Monday’s lows near 1760.
Fundamental analysts pulling their hair out over one concern or another economically
The key gauge for the US equity markets in the futures arena – the S&P 500 futures – have roared off of the lows set last Monday at 1760 or so. The reaction to the Fed’s tapering / comments tells the world the Fed’s medicine will be chased with sugar at every turn to ensure markets do not react to harshly to their moves.
Their goals in tapering are simple – to put some arrows back into their quiver so that the next time real economic or systemic trouble exists that they will have them to use AND to try to instill a sense of normalcy in the markets. They can jawbone all they want about the unemployment rate, but in their heart of hearts, they have to know that decreasing unemployment is coincidental with the QE activities. They may certainly be concerned about things – the domino effect to be experienced in the US resulting from the implementation of the Affordable Care Act being first among those concerns.
What the bears on the US economy and the markets seem not to realize is that the equity markets have little correlation with the economy itself historically. Rather they are clearly linked – although perhaps not perfectly correlated – with the monetary and fiscal policies of the local country. Right now in the US, monetary policies – despite the token tapering announcement – have to be considered very accomodative. The fiscal policies are a bit of a mess with all of the mixed messages coming from Washington, DC – including the very scary black hole of unknown consequences surrounding the A.C.A.’s implementation. So, it has to be assumed that the monetary policies will remain at least fairly accomodative until much of the uncertainties in DC are addressed adequately. If that is the case, then it would stand to reason that the equity markets will remain at least fairly friendly to investors during that time.
Technical outlook for the S&P 500 futures
Elliott Wave technicians have laid out a map that has the S&P futures eventually making it up to 1897 in the very near futures. However, they say that a stop at 1827 may occur first – where a pause / correction will take place before the next thrust higher towards 1897 takes place. Support for the S&Ps comes in at 1810 (the previous ST peak) and then down at last Monday’s lows near 1760.