The S&P 500 index has opened sharply higher this Thursday, buoyed by a 3rd straight day of impressive gains on the technology stocks. Ten out of the eleven indices on the S&P 500 are in positive territory as a slew of positive fundamentals has opened the door for risk flows to dominate the financial markets.
The Technology and Communication indices are up more than 1%, as the US House of Reps passed the $1.9 trillion stimulus bill. Furthermore, the Initial Jobless Claims numbers came in at 712K, marking the lowest it has ever been since the pandemic broke out.
Technical Outlook for S&P 500
Today’s upside gap has given the S&P 500 a gain of 0.62%, further extending the violation of the descending trendline resistance. A higher close confirms the break of the trendline and allows the index to aim at the previous all-time highs at 3950.4. If this level is uncapped, 4005 could come into focus as a potential new target for bulls.
On the other hand, rejection at 3950.4 makes a pullback towards 3870.0 a possibility. However, downside targets at 3823.9 and 3765.1 become more viable if the descending trendline is degraded in its role-reversed function.
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S&P 500 Index; Daily Chart
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