SPY-Broad Sector Support , AlphaOverBeta Market Outlook

2020년 5월 31일

Hello traders,
Market Outlook 01.06.2020
S&P 500 above its 200-day moving average following a broad sector recovery

The stock market extended its rally this week on continued optimism about an economic recovery and a fear of missing out on further gains. The S&P500 was up +3.0% for the week, base on a nice uptrend in All 11 S&P 500 sectors which had finished in the green and supported the S&P 500 to close above its 200 days moving average.
U.S.-China relations are front news again as there was uncertainty regarding China approving legislation to tighten its control over Hong Kong.
Trump said the U.S. will remove special treatment for Hong Kong, will review practices of companies from China on U.S. financial exchanges, and will terminate its relationship with the HWO (World Health Organization), as he is trying to maneuver domestic riots from home.

AlphOverBeta Next Week Forecast
We have chartered a number of bands for the S&P500, these bands are used for risk control and decision making.

• 295-310 - This is the best scenario we have for the rest of 2020. This bullish range holds as long as the price is above 295
  
• 280-295 - is the current locked trading range, when prices went above 295, it triggered a bullish signal in our systems.
  
• 265-280 is the bearish zone.
  

Trade Smartly,
Alon, AlphaOverBeta