The S&P 500 index opened higher on Thursday, shaking off poor data and embracing rising bond yields instead.
US 10-year bond yields were sharply higher on Thursday, gaining more than 2% to send financial stocks listed on the S&P 500 soaring. The higher open by Financials and the further drop in the weekly jobless claims data enabled the S&P 500 index make further progress in its quest to push further beyond 4200.
Underwhelming GDP data (6.4% versus the market consensus of 6.5%) and poor durable goods orders data did nothing to stop the bulls, who preferred to invest based on the rising bond yields and the fall in the weekly Initial Jobless Claims from 444K to 406K.
Technical Outlook for S&P 500
The upside move is aiming to retest the 4220.63 resistance level. A break above this level targets the all-time high point at 4238.0. If the price goes on to print a higher high, we could see a further push towards 4260 and subsequently at 4301.0, where the 200% Fibonacci extension of the 20 March 2020 to 10 April 2020 price swing is found. This upside move comes in the context of price continuation following the break of the neckline of the double bottom.
Conversely, a rejection at 4220 sets up a pullback that targets 4176.61, with 4150.37 and 4120.48 lining up as additional targets to the south.