S&P 500 started higher the first session of the week after the better than expected economic data continues for one more day. The U.S. ISM Non-Manufacturing PMI came in at 57.1 beating the analyst’s estimates of 50.1 in July. The ISM Non-Manufacturing New Orders Index registered in at 61.6 also above the forecasts of 44 in June. The ISM Non-Manufacturing Employment Index reported at 43.1, topping the estimates of 30.7.
The U.S. Services PMI registered in at 47.9, above the analyst’s expectations of 46.7 in June. The PMI Composite came in at 47.9, topping the estimates of 46.8.
The data today came after better than expected economic data from the USA the previous week, including a record rise in payrolls in June. A strong rally in Chinese stocks also improves sentiment as investors increase bets for a fast recovery despite the rising number of new coronavirus infections.
S&P 500 is 1.75% higher at 3178 as the index continues higher for the fifth straight day as the bulls are in full control of the index after it tested twice the 200-day moving average successfully.
Traders focus on the upside, where the first resistance stands at 3184 the daily top. The next hurdle for the S&P 500 index will be met at 3192, the high from June 11. In case the bulls manage to break higher, then the bulls will be looking for an extension above 3231 the high from June 9.
On the other side, the immediate support for the S&P 500 stands at 3124, the daily low. The next level for the S&P 500 to watch in case of more selling pressure is at 3072 the low from July 2. Sellers will take back control below the 200-day moving average at 3027.