The S&P 500 index hit a new record high this Wednesday, as the markets await the FOMC minutes.
A surge in the risk-sensitive tech stocks helped the index to its new record, building on the hawkish tone assumed in the FOMC statement of 16 June. It is the minutes of this meeting that is being expected.
The Technology Index was one of eight sectoral indices that are trading higher on the day, while the energy stocks and the financials are both down. The drop in crude oil prices is responsible for the dip in the energy index.
The FOMC minutes will provide more information behind the Fed’s hawkish position, especially regarding the timing of the tapering of the QE program as jobless claims tick lower and the labour market shows further recovery.
Technical Levels to Watch
The intraday push to new highs targets the 4368.25 price level as potential resistance, being the 78.6% Fibonacci extension from the 25 March – 7 May – 19 May price swing. Above this level, additional targets could become available at 4408.11 and 4453.54.
On the other hand, a rejection at the current resistance allows the 4301.30 price support to become available once more. Below this level, 4275.00 and 4253.27 are additional downside targets.