The S&P 500 index is marginally higher on the day, after touching off new all-time highs at 4197.0. This high remains slightly short of the 4200 initial resistance forecast by Credit Suisse analysts a few weeks ago.
Low-volume trade is the hallmark of today’s open, as investors remain on the sidelines before the FOMC decision which is expected in a few hours. As of the time of writing, the S&P 500 was up 0.22%.
Boosting the index today was the energy stocks, which collectively have pushed up by 2% as crude oil prices ticked higher on Wednesday. Rising bond yields have also propped up the Financials Index by 0.3%. Tech stocks are underperforming though, ahead of key earnings reports by Apple and Facebook.
Technical Outlook for S&P 500 Index
The S&P 500 index has touched off new all-time highs at 4197.0, in its very slow grind towards the 4200 psychological resistance target identified by Credit Suisse analysts several weeks ago. This area is now the price level to beat for bulls, with 4025 and 4050 appearing to be the reward for a successful break of the 4200 price level. An additional resistance also comes in at 4301.0, which is the 200% Fibonacci extension of the price swing from 23 March 2020 to 29 April 2020.
On the flip side, a rejection at 4200 could allow for a correction that targets the 38.2% Fibonacci retracement level of the C-D wave in the “W” pattern at 4062.8. The price would need to break down barriers at 4150.4 and 4113.2 (23.6% Fibo retracement of the C-D wave) to get there. Additional downside targets remain at 4022.1 (50% Fibo retracement), 3981.4, 3950.1 and 3870.0, in that order. These areas are also potential dip-buying areas if the S&P 500 index decides to seek a higher low from the previous dip at point C.
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S&P 500 Index; Daily Chart
