The S&P 500 followed other US markets higher this Monday after doctors hinted that US President Donald Trump could leave the Walter Reed Medical Centre as early as Monday. Service sector activity in the US also rose above pre-pandemic levels, even as hopes rise for a new coronavirus stimulus package from the US Congress heightened.
InvestingCube's S&R Levels
Not in Sell Zone
Data from the Institute of Supply Managers showed that the ISM Services PMI rose to 57.8, well above the previous figure of 56.9 and the consensus number of 56.3. This number is also boosting sentiment on the S&P 500, which is up by 1.34% on the day to 3393.4.
Technical Outlook for S&P 500
Today’s moves to the upside continue the ascent of the S&P 500 after the a-b-c corrective wave in the descending channel. This move is now challenging the resistance formed by the previous highs of 18-21 August at 3393.5. A break above this level targets the 3481.6 resistance, after which the all-time high at 3588.1 comes into view. Re-establishment of the uptrend comes when this high is breached.
Conversely, a rejection at 3393.5 brings in 3335.5 into view, with 3282.2 and 3228.4 lining up as potential support targets to the south. 3137.0 also remains relevant to the price picture if a decline in the S&P 500 index sends prices back into the channel.