S&P 500; US Indexes Fundamental Forecast – April 24, 2017

U.S. stock indexes are expected to open higher early Monday in the pre-market after exit polls in the French presidential election indicated a victory for centrist Macron.

The exit polls showed the independent candidate Emmanuel Macron gathered most of the votes in the first round of the French election. The same polls indicated that far-right candidate Marine Le Pen placed second in the first vote and both will dispute the presidency on May 7, when the runoff vote takes place.

Because of the results, investors are expected to leave the safe-haven Treasuries, Japanese Yen and gold and move into the global equity markets.

June E-mini S&P 500 Index futures are likely to gap higher on the news. If buyers continue to come in after a gap-opening then look for them to try to press the index into the recent top at 2375.00.

June E-mini Dow Jones Industrial Average futures are also expected to gap higher. If there is a “gap and go” rally then look for buyers to go after the recent high at 20828.

Look for the June E-mini NASDAQ-100 Index to also gap higher. It is likely to post a new all-time high on a move through 5481.25.

There are no major economic reports today so the focus will be on the French election. Later in the week, investors will get the opportunity to react to the announcement of the Trump Administration’s tax reform plan. Congress could also go after healthcare reform. Late in the week, the discussion will be about increasing the debt ceiling to keep the government open.