The technology shares are leading the charge in what has been a day of muted but bullish trading on the S&P 500 index. Strong gains on the tech stocks come ahead of earnings reports from Apple, Microsoft, Netflix and Tesla this week.
Investors are also looking forward to the FOMC Meeting on Wednesday, as well as the advance GDP number. Tech stocks are gaining 1.5% on Monday. The upside potential on the S&P 500 is being challenged by the headwinds that energy stocks are facing as a result of a limited upside in crude oil prices. Energy stocks are trading roughly 2% lower.
Technical Outlook for S&P 500
The S&P 500 index is now targeting new highs above 3859.8. If this plays out, then the pathway towards the 161.8% Fibonacci extension at 4005.9. This move depends on the ability of bulls to break the 3859.8 resistance.
On the other hand, failure to beat the all-time high could allow for a pullback towards 3765.1. Below this level, 3721.2 and 3645.4 are additional targets to the south which could become viable if the index declines. This outlook would depend on a breakdown of the ascending channel on the daily chart.
S&P 500 Index, Daily Chart