Consumer Confidence Drops But S&P 500 Hits Fresh All-Time High

S&P 500 making fresh all-time high in early trading despite the drop in consumer confidence to 125.5 in November from 126.1 in October and below the analyst’s expectations of 127, the Present Situation Index fell to 166.9 from 173.5. Earlier the Goods Trade Balance climbed from previous $-70.39B to $-66.53B in October. The United States Redbook Index (month over month) dropped from previous -0.3% to -0.4% in November 22. The S&P/Case-Shiller Home Price Index (year over year) came in at 2.1% in line with forecasts for September.

Dow Jones also trades higher at 28,099 while Nasdaq trades 0.15% higher at 8,645 making fresh all-time high as hopes that a trade deal between USA and China might be close.

S&P 500 getting a boost from Best Buy Co. Inc. +7.87%, Intuit Inc. +3.45% and Chipotle Mexican Grill Inc. +2.56%. On the other hand, S&P dragged down by Dollar Tree Inc. -15.40%, Hewlett Packard Enterprise Co. -7.85% and Iron Mountain Inc. -6.64 %.

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S&P 500 Technical Outlook

S&P 500 hits fresh record highs for second day in a row, sailing in uncharted teritorry The index has reached overbought levels as indicated in our daily chart by the RSI 14 index, currently trading at 72.23 a level that we haven’t seen since January 2018.

On the upside, S&P 500 immediate resistance stands at 3,144 today’s high, while a break above will attract fresh buyers targeting the 3,150 psychological mark.     Traders must be very careful at the all-time high level, while the stock rally is well supported, by optimism on trade negotiations and by dovish stance by central banks around the world, including Fed, the possibility of a profit-taking correction can not be ruled out.

On the downside, today’s low at 3,127 will provide immediate support but a break below that level will increase the pressure to the next support at 3,083 the low from November 14th. If bears manage to clear this level, then the way will be open for a move down to the previous resistance that now has turned in support at 3,024.More content