S&P 500 Index Trades Higher In Renewed Attempt to Reclaim All-Time Highs

The S&P 500 index has rebounded from Thursday’s decline, building on demand for shares listed in the Technology index to add 1.2% as of the time of writing. 

A rise in bond yields failed to deter the bulls on the S&P 500 index, as the Technology Index rose 1.57% after the opening bell. The Communications Index is also up on the day, adding 1.26%. 

The S&P 500 index got some impetus from the slight improvement in the IHS Markit’s Manufacturing and Services PMI data. The Flash Manufacturing PMI came in at 60.6 (previous 59.1) while the Flash Services PMI improved from 60.4 (an upward revision) to 63.1. 

The S&P 500 index is coming off yesterday’s decline which was triggered by the proposal of the Joe Biden administration to apply a 39.6% capital gains tax on wealthy Americans. 

Technical Levels to Watch

Today’s advance allows the S&P 500 index a chance to reclaim the all-time highs at 4191.3 if the candle closes above the previous 4 daily candles.

Bulls would now need to see the index break above this level to claim 4200 in the first instance. Above this level, Credit Suisse identifies potential resistance barriers at 4225 and 4250. The chart above shows the 200% Fibonacci extension at 4301.0 as a potential upside target for the future.

However, if the active daily candle closes below the week’s open price, this may suggest weak buying pressure and allow bears to try to force a breakdown of the 4150.4 support. If the support breakdown is successful, then the price may decline towards 4062.8 (38.2% Fibonacci retracement of the C-D wave on the “W” pattern). Below this level, 4022.1 and 3981.4 serve as additional support targets.

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S&P 500 Index Daily Chart

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