Chart Overview
Today, the S&P 500 has surged on the news that Donald Trump has secured the presidency. The recent price action is due to the massive bullish sentiment surrounding the U.S. economy after Donald Trump’s presidential victory. The S&P 500 futures are up 2.14% before US market open this Thursday.
Key Technical Patterns & Levels
Ascending Triangle Breakout
There is a clear break above the ascending triangle pattern that has been forming since late summer. This pattern is bullish, and in this case, the breakout occurred decisively above the resistance level around the 5,725 – 5,749 zone. Ascending triangles signify that buyers are gaining control, and a breakout above resistance leads to a strong upward push.
The “Trump Victory Candle”
This bullish candle is here as investor confidence in Trump’s economic policies and the potential for pro-business reforms pumps markets. This candle closes above the breakout level and previous high. Traders are targeting higher levels for the coming weeks and months in hopes Trump can stimulate the economy. Even though inflation is down, people say that costs are up all around and they hope Donald Trump can fix this.
Moving Averages Support:
Both the 50-day Simple Moving Average (SMA) at 5,749.35 and the 100-day SMA at 5,643.81 are trending upward. These moving averages are also strong support levels that traders are watching for possible buy opportunities.
Bullish Target – 6,200
Following the breakout, we see a clear price target around 6,200 based on the measured move from the ascending triangle. This target aligns with the bullish sentiment, so there is significant upside potential remaining. Given the strength of the breakout and the momentum behind the recent rally, reaching 6,200 could be a realistic short-term goal.
Bullish Case 📈
- Technical Strength: The breakout from the ascending triangle pattern is an undeniably bullish indicator. Combined with the Trump Victory Candle, we are witnessing a classic momentum-driven rally.
- Support from Moving Averages: Both the 50-day and 100-day SMAs are supportive, confirming this bullish structure.
- Political Sentiment: With Trump back in office, market participants are optimistic about a pro-business economic environment, expecting deregulation, tax cuts, or other fiscal stimulus measures.
Outlook & Summary
- Short-term (1-2 weeks): Bullish, with a potential quick move toward the 6,200 target. Momentum is strong, and the breakout above resistance is a green light for bulls. 🎯
- Medium-term (1-3 months): As long as price remains above the breakout level and the 50-day SMA, the bullish structure holds. A retest of the breakout level could offer a new buying opportunity if it holds.
- Long-term (3+ months): Given the strong uptrend, the long-term outlook remains bullish. With favorable economic policies expected under Trump’s administration, we could see a sustained rally, barring any external macro shocks.
Final Takeaway
The breakout above the ascending triangle pattern, combined with bullish sentiment surrounding Trump’s victory, sets the stage for a continued rally in the S&P 500 E-mini Futures. The 6,200 target is now in focus, and as long as the breakout holds, bulls are firmly in control.
