The US indices began the day on a negative note, as risk aversion swept through the markets in the London session. The S&P 500 index was hit by falling crude oil prices, causing the energy index to fall the heaviest among the 11 sectors listed on the index.
Upbeat macroeconomic data was unable to bolster the market sentiment. Earlier on, the Department of Labor’s weekly data on the number of first-time applicants for unemployment benefits (Initial Jobless Claims) fell to its lowest pandemic-era levels, hitting 684K (consensus – 727K; previous – 781K).
The S&P 500 index is presently off intraday lows but remains in negative territory, losing 2.0 points presently.
Technical Outlook for S&P 500
The S&P 500 index has found support at the 3870.0 price level, keeping the bulls in contention to initiate a resurgence towards 3910.5 if fundamentals turn favorable. The appearance of the active daily candle resembles a hammer. If it stays that way and does not close below 3870.0, then there is a chance of recovery towards 3910.5.
3983.9 remains the price level to beat for bulls, with a clearance of this level uncapping the 2nd barrier to new all-time highs. 4005.9 remains a potential upside target in the short-term (161.8% Fibonacci extension).
On the flip side, a decline below 3870.0 is needed to open the door towards 3823.9. If this level fails to hold firm, then another ride to the south could be in the offing, this time targeting 3765.1 and 3721.2 along the way.
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S&P 500 Index; Daily Chart
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