The S&P 500 has started the second quarter of the year on a very strong footing, surging spectacularly into the record-high territory after a fantastic jobs report on Friday, and a highly upbeat outlook provided by the IMF on the US economy.
Analysts at Credit Suisse renew their bullish outlook on the index, seeing a potential move towards the 4104/4109 price level next, followed by a push to the 4200 psychological level.
The Energy Index was able to start the day with a gain of more than 1% after the WTI crude oil contract gained 2.88% on the day. The announcement by the International Monetary Fund (IMF) of a raise in its outlook for the US economy is also triggering bullish momentum on the S&P 500 index, which is presently up by 0.12%.
Technical Levels to Watch
Having extended the advance beyond the 127.2% Fibonacci extension level at 4005.9, the S&P 500 now seems set to advance towards the 161.8% Fibonacci extension level at 4301.0. This is in keeping with the analysis by Credit Suisse.
On the other hand, bears would need to see a drop below 3870.0 before the index would assume a short-term bearish tone, with 3823.9 and 3765.1 forming additional downside targets. Before then, the index would need to take out 3950.1 and 3910.5 before this outlook becomes valid, otherwise, those price levels may simply become areas for dip-buying.
S&P 500 Index; Daily Chart
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