Following yesterday’s strong performance, the S&P 500 index has had a muted open to the day. Investors continue to watch out for any possible headway in the passage of the additional coronavirus stimulus from the US Congress, as well as hints of economic outlook from the Fed Chairs comments at the National Association of Business Economists meetup.
The S&P 500 was able to notch up one-month highs yesterday as optimism about President Trump’s health rose, and has added to that performance on Tuesday. These gains are as a result of the 2% rise in the energy index on the back of rising crude oil prices. House Speaker Nancy Pelosi is scheduled to have a phone discussion with Treasury Secretary Steve Mnuchin on Tuesday to try to work out details of the additional coronavirus stimulus package, which continues to linger since the last stimulus expired on July 29.
As at the time of writing, the S&P 500 was up by 0.16% at 3414.5. Investors will also be watching out for any hints of policy direction when the Fed Chair Jerome Powell presents a speech at an event hosted by the National Association of Business Economists.
Technical Outlook for S&P 500
Yesterday’s candle was able to close above the 3393.5 resistance. A higher close today cements the breakout and opens the door towards the 3481.6 upside target. This target is the only barrier that stands between buyers and the all-time high of 3588.1 attained on September 2.
Failure to hold on to a close above the 3393.5 price level could lead to a pullback below this price level, which could allow sellers back into the fray. Any selling action targets 3335.5, with 3282.2 and 3228.4 continuing to constitute the immediate downside targets below 3335.5.