The current situation of the US stock market requires an immediate update on the outlook for the S & P500 index.

INCH HYBRID

On the basis of the Elliott’s main scenario, the analysis of the bullish trend of the EMINI S & P500 highlights that the US Markets can turn around. Soon it is possible a sharply drop, especially below 3506.50. Therefore, be careful at this level because the EMINI might drop to 3432 / 3413.00 area and maybe 3394.22.

 

The photo shows Inchcapital Hybrid - EMINI S&P500 Elliott Wave Forecast - daily candlestick chart

Inchcapital Hybrid – EMINI S&P500 Elliott Wave Forecast – daily candlestick chart

 

But beware, this is the best solution for the current bullish trend. In fact, it is noted that the count has reached a crucial crossboard with two structural reference points at 3668 and 3225. Beyond the first level (3668) we continue in the direction of ambitious and identifiable bullish targets at: 3823.15/3864.60, 4097.61 e 4351.60.

On the other hand, below of 3225 will occur a primary correction that might push the market towards the 2950/2850 area. If that happens, no one should be surprised in view the various statistical excesses that the U.S Stock Market has been showing for some time.

INCH ROBO ADVISOR

The Inch platform shows long trades in both the short and medium-long term with stop levels present respectively at 3455.21 and 3361.75. Given the excesses on the market, we prefer to focus our attention on the stop levels rather than on the targets highlighted into the charts below.

 

Photo shows InchCapital Platform - S&P500 index bar daily chart updated on November 11, 2020

InchCapital Platform – S&P500 index bar daily chart updated on November 11, 2020

 

Photo shows InchCapital Platform - S&P500 weekly bar chart updated on November 11, 2020

InchCapital Platform – S&P500 weekly bar chart updated on November 11, 2020

 

The one-month quantitative perspectives elaborated on the last Friday 6 November have already reached the expected targets with the last top highlighted at the weekly opening

 

Photo shows InchCapital Platform - SP500 index predictive analysis for the next 20 trading-days updated on November 6, 2020

InchCapital Platform – SP500 index perspective analytics for the next 20 trading-days updated on November 6, 2020

 

INCH APB (AUTOMATIC PORTFOLIO BUILDER)

The flex model portfolios of 20 stocks on both the Nasdaq 100 and the S & P500 indices have been fully invested since 13 April 2020 and show liquidity on residual levels.

 

Photo shows InchCapital APB - Model Portfolio Nasdaq 100 Flex 20 Hedged updated November 7, 2020

InchCapital APB – Model Portfolio Nasdaq 100 Flex 20 Hedged updated November 7, 2020

 

Photo shows InchCapital APB - Model Portfolio S&P500 Flex 20 Hedged updated November 7, 2020

InchCapital APB – Model Portfolio S&P500 Flex 20 Hedged updated November 7, 2020

 

In conclusion – S&P 500 what’s up

These portfolios are automatically updated every week and convert the invested into liquidity when the market structure tends to register a primary correction (or a reversal). Consequently, until there is no change, the situation going to be the same, namely – bullish.

However, what is the difference between the two Hybrid and Robo approaches? The first highlights precise levels that do not change and that can be activated without waiting for the weekly closing. The other two Robo and APB have levels of protection that change day after day and week after week.

Therefore, we have two different hedges that have the same purpose, namely to manage market risk in an objective and non-discretionary way.

www.inchcapital.com – Author: Emanuele Cecere