The S&P 500 has made a strong start to the day, following comments by US Senate Majority Leader Mitch McConnell on pushing for a robust deal. This also comes as Joe Biden pulled closer to the coveted 270 mark, despite the cloud of legal challenges to the counts in several key states.
As at the time of writing, a 2.09% jump has been seen on the S&P 500 Index charts, matching the October 16 high.
All 11 major sectors of the S&P 500 index are trading higher. The Materials Index and the Technology Index are the current toasts for investors, rising 3.4% and 2.6%, respectively.
UBS sees the index targeting 3700 by June 2021, while Standard Chartered is seeking for a resumption of the uptrend once the US election is over. But what is the short-term outlook?
Technical Outlook for S&P 500
The S&P 500 index has rocketed upwards and is now challenging the 3528.9 price level. The price action needs to clear this area to challenge the all-time highs at 3588.1. Only a break that takes the S&P 500 beyond this level will establish new record highs. This outlook matches that of Credit Suisse, which sees a break above the 3550 October high as a necessity for the price to retest the 3588 record-high.
On the other hand, a rejection at 3528.9 along with follow-through selling towards 3481.6, creates an evolving triple top pattern. This pattern would require sellers to force prices below the neckline support at 3282.2; a move which has to take out 3481.6, 3393.5 and 3335.5 along the way. Completion of the break below the neckline enhances a move towards 3228.4 and 3137.0, where the 200-day moving average comes into play. Price projection comes in around 3028.3. Sellers would need a push below the 200-day moving average and 3070.8 to actualize this.
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S&P 500 Index Daily Chart
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