The S&P 500 continues its rally this Thursday after upbeat US core retail sales data. The US retail sales for the month of December 2019 came in at 0.3%, which was in line with expectations. The previous number was also revised upwards to 0.3%. However, the core retail sales (retail sales ex autos) improved to 0.7%, which was better than the 0.5% that analysts had predicted. The previous figure was also downgraded to 0.0%.
The S&P 500 index is also riding on the back of the signing of the US-China phase 1 deal, pushing the S&P 500 to 3,309 as at the time of writing.
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Technical Outlook for S&P 500
The S&P 500 is pushing to all-time highs this afternoon and has successfully breached the 100% Fibonacci extension level (3263.3). This clears the pathway to the next extension level and also opens the door for attainment of the next resistance ray on the Andrew’s pitchfork somewhere close to the 3388 price area. This should be the next logical target. Above this area, the S&P 500 should target new highs at the 161.8% Fibonacci extension level or the top ray of the Andrew’s pitchfork, whichever comes first.
If price meets resistance at 3388, then we can expect the S&P 500 to take a breather and retest the support levels as 3263.3 as well as the high of the week ended Nov 18 at 3124.1. Below this area, the 3031.3 price level becomes the next available support target.
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