The S&P 500 index is modestly lower this Monday. Today’s slight dip follows a stellar performance of the index last week, which culminated in the attainment of a new record high on Friday.
Investors appear to have taken some time off today, as the earnings season is set to kick off this week with banking shares providing their 1st quarter 2021 earnings figures. The financial stocks index of the S&P 500 is up 0.11%, and energy stocks are also up 0.09% after a rise in crude oil prices on the day.
Later today, there would be an auction of the 10-year Treasury Note. This will be the only major fundamental influence on the US stock markets on the day.
Technical Outlook for S&P 500
Today’s opening price lies short of the all-time high of 4129.5 posted last week. This level remains the price to beat for bulls, with potential new targets sitting at 4200 (as per Credit Suisse’s outlook), and 4301.0 (200% Fibonacci extension on the daily chart below).
On the other hand, a downside target from the correction of price from the W-pattern would target the 38.2% Fibonacci retracement of wave C-D at 4026.5, with further downside targets at 3992.7 (50% retracement), 3950.1 or 3910.5 (78.6% Fibonacci retracement).