SP 500 Rally Puts Key Price Target In View

David Busick

The S&P 500 has rebounded from the October lows, making it a good time to provide an update on the state of the major index from a charting perspective. On August 8th 2014, I wrote about the S&P 500 E-Mini.

That was some time ago, but several points are worth noting and one of the targets is still in play.

The highlights of that post were:

  • A correction was occurring
  • 2 targets of 2011.5 and 2030.
  • An open gap at 1896.5
  • Central Banks and interest rates

It’s been almost 3 months since that post and a lot has happened, so let’s see where the S&P 500 e-mini is at now:

  • A correction did occur from September 19th to October 15th. The correction was from 2014.5 to 1813 or 10.0%; a perfect “technical correction.”
  • The price target of 2011.5 was hit on September 19th.
  • The price target of 2030 is still valid and definitely within striking distance now.
  • The gap at 1896.5 was closed.
  • The US Federal Reserve has ended QE3 and in their October 29th announcement said.. “likely.. to maintain the 0 to 1/4 percent target range for the federal funds rate for a considerable time.. especially if projected inflation continues to run below the Committee’s 2 percent longer-run goal”*
  • The Bank of Japan (BOJ) announced on October 31st they would increase their bond purchases (QQE) and will now include purchases of exchange-traded funds (ETFs) and real estate investment trusts (J-REITs).*

*FOMC October 29th, 2014 Statement

*BOJ October 31st, 2014 Statement

 

S&P 500 E-Mini 1 year Daily Chart

s&p 500 october rally price targets chart

 

One more long-term chart to highlight how I got my S&P 500 target of 2030.

S&P 500 E-Mini 4 year Daily Chart

s&p 500 fibonacci price target 2030

 

Follow Dave on Twitter: @TheFibDoctor

No position in any of the mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

 

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