The S&P 500 index managed to shake off poor consumer spending and durable goods orders data, to trade above the 3700 mark this Wednesday. The market also looked past US President Trump’s threat not to sign the latest coronavirus stimulus package bill, but rather drew inspiration from an upbeat unemployment claims report to inch higher by 0.52% at the time of writing.
Initial jobless claims fell to 803K for the week ended December 19, which was lower than last week’s upward revision of 892K and the consensus number of 882K. Continuing jobless claims also fell by 170K from a week earlier, coming in at 5337K in what was a generally upbeat report. An earlier report had shown that consumer spending dropped in November, marking the first decline since April following a resurgence of the coronavirus pandemic.
The S&P 500 index is experiencing low volume trading on the day, as the Christmas holidays arrive.
Technical Levels to Watch
The upside move targets 3721.2, with 3738.6 (127.2% Fibonacci extension) serving as a potential target to the north. This move would require an uptick in volume, which we may not see until after the holidays are over.
On the flip side, a retreat from present levels targets 3645.4, with 3588.1 and 3528.9 serving as additional targets to the south.
S&P 500 Daily Chart