S&P 500 Index Opens Lower, But 4150 Holds Firm Ahead of FOMC Minutes

The S&P 500 index is trading lower today, but selling pressure lacks momentum even as receding crude oil prices caused the energy stocks to drag the index lower. 

Monday’s session was marked by portfolio realignment by traders ahead of the FOMC Minutes on Wednesday. On Tuesday, sellers were unable to consolidate on Monday’s losses, as various sectors within the S&P 500 traded on a mixed note. The 0.2% rise in technology stocks countered the fall in the energy index.

Tuesday was another sparse day, fundamentally speaking. The only piece of data showed a 9.5% decline in April’s Housing Starts. This news caused the S&P’s Real Estate Index to open lower. However, it is now 0.32% higher as of writing, thus limiting losses on the S&P 500 to just 0.11%.

Technical Outlook for S&P 500 Index

The active daily candle is a few pips short of testing the support at 4150.37. This would be the second test this week, and if this level fails, we could see a run towards the 4120.48 support level. Below this mark, 4082.72 and 4032.37 form additional

support areas.

The evolving bullish flag pattern could resolve with an upside break of the 4176.61 price mark, following a bounce from 4150.37. This move allows the pair to make a break for the 4200 psychological support, with a projected measured move that terminates at 4220.63. An additional break of this resistance is required to allow the bulls to aim for the all-time high at 4238.04. This price stands as the barrier before Credit Suisse’s projected resistance at 4260 and the 200% Fibonacci extension of the chart at 4301.0.

Technical Outlook; S&P 500

The active daily candle is a few pips short of testing the support at 4150.37. This would be the second test this week, and if this level fails, we could see a run towards the 4120.48 support level. Below this mark, 4082.72 and 4032.37 form additional support areas.

The evolving bullish flag pattern could resolve with an upside break of the 4176.61 price mark, following a bounce from 4150.37. This move allows the pair to make a break for the 4200 psychological support, with a projected measured move that terminates at 4220.63. An additional break of this resistance is required to allow the bulls to aim for the all-time high at 4238.04. This price stands as the barrier before Credit Suisse’s projected resistance at 4260 and the 200% Fibonacci extension of the chart at 4301.0.

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S&P 500 Daily Chart

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