The S&P 500 index has opened the day higher, after two successive days of losses. This bullish open was despite the initial lower open that was brought on by lower energy stock prices.
As of the time of writing, the S&P 500 Index was up by 0.64%, paring all of yesterday’s losses. Leading the charge are stocks listed in the Materials and Healthcare sectors, which are trading more than 0.6% higher.
Also helping the S&P 500 index to gain some traction is the lackluster performance of the 10-year bond yields in the market. This asset is only up 0.97% on the day after a steep fall of more than 3% on Tuesday.
Technical Levels to Watch
The active daily candle has initiated a recovery on the pay, forming a piercing pattern. The high of the active candle remains lower than the previous day’s high, indicating a lack of sufficient buying momentum.
Bulls need a strong bullish outside day candle to confirm a rise in buying momentum that takes the S&P 500 index above the highs of the 13/14 April candles (4153.6) and towards the all-time high at 4191.3. Above this level, the 4200 and 4301.0 resistance barriers come into the picture.
On the flip side, failure to establish a strong outside day candle that clears 4153.8 allows for a continuation of the decline, targeting the 38.2% Fibonacci price level of the C-D wave in the “W” pattern at 4062.8. Below this level, additional downside barriers exist at 4022.1, 3981.4 and 3950.1. 3910.5 and 3870.0 round off potential short-term downside targets.
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S&P 500 Index; Daily Chart
