US equity markets have so far proven broadly resilient despite a downturn in global risk appetite triggered by fears about Europe heading back into lockdown. While major European equity bourses nurse losses of anywhere between 0.2-1.7% on the session, the S&P 500 is currently trading flat at the 4710 mark, only a few points away from record highs printed at the start of the month at 4718.50. Thursday’s mixed day was good news and bad news for our possible Lunar Eclipse top scenario. The DJIA declined. But, the S&P and Nasdaq Composite were up.  However, at this writing, in overnight trading, the S&P futures are having a fairly good up session. If this rally were to carry over into Friday, there is a good chance for the S&P 500 to make a new all-time high. That is the kind of set up that works the best. This change in trend window could stretch into the weekend and into early Monday.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES : (TECHNICALS)

From the technical perspective, the S&P500 is vulnerable to the downside risk based on weak and threatened fundamentals due to global risk off, but might be supported by an uplift in Tech Giants. In the one hour chart S&P500 is supported by exponential moving averages 50 and 200, an extended corrective structure has formed - indicating a bullish wave in near term. 

In the four hour and daily time frame, in accordance to elliot wave pattern are showing signs of one final wave up before looking for bearish corrections of higher degree. S&P500, if managed to break the daily high, we would be seeing the indice crossing 4730. A breakout below exponential moving average 50 in the four hour time frame will drive the pair lower towards 4598. 

S&P500 Affected by Global Risk Off

Nov 22 2021