Trader View from Toronto: SPX Aims for 2,487

Focus: STRATEGIES

Ziad Jasani Image Ziad Jasani Managing Director and Partner, Independent Investor Institute

S&P 500 projects up to 2,487 with better odds of pausing at 2,470 and softening to end the week, but remaining above 2,445. Growth out-performs (Technology), asserts Ziad Jasani, of the Independent Investor Institute, Toronto, in his weekly video.

Strategic summary week of July 17– 21:  

• Global Equity Markets bounced back to all-time-highs and surpassed: US, iShares MSCI Emerging Markets Index ETF (EEM), Growth-led.
• Global Bond Markets still relatively expensive, and rising yields likely persist.
• Global Commodity Markets have bounced (weak) and need USD to continue (less likely).
• Broad-Decisions: Hold for mid-to-longer-term equity positions but get your stop-losses in, look-long (Buy) short-term with a focus on US Technology, Energy, Materials, Industrials.
• Risks for the week: Chinese data (Sunday, July 16) sets the tone to start the week. (We see it being bullish.) BOJ and ECB Monetary Policy press conference (Thursday, July 20) sets the tone to end the week. (We see them as bearish.)

• Implications (US): S&P 500 (SPX) projects up to 2,487 with better odds of pausing at 2,470 and softening to end the week, but remaining above 2,445. Growth out-performs (Technology), Financials stagnate at highs but hold up, Materials/Mining favorable front end of the week only, Defensives (including Bonds) hold up the front end of the week but under-perform to end.

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