It was a mixed grill in the US markets on Monday, with the Nasdaq 100 testing new highs and the S&P 500 index failing to impress amid a lack of significant fundamental push.
The S&P 500 Energy Index fell around 2.5% on the day, as lower crude oil prices weighed down energy stocks. The Tech index performed well, rising more than 0.2% to prop up tech stocks. However, this was not enough to stave off the bears.
The S&P 500 is down 0.17% at the time of writing in a day marked by low trading volumes.
Technical Outlook for S&P 500
It is too early to say if the index has formed a top or not. The price picture is now evolving into a rising wedge. A decline below the wedge’s lower boundary targets the 3645.4 support level, with 3588.6 serving as the next downside target. Other targets to the south include 3528.9 and 3481.6, but these will require a decline beyond the projected price move from the wedge’s downside break.
On the other hand, the S&P 500 needs to extend beyond the 3699.2 all-time high to form new highs. The 3738.6 price level at the 127.2% Fibonacci extension is a logical target.
Don’t miss a beat! Follow us on Telegram and Twitter.
S&P 500 Daily Chart
More content
- Download our latest quarterly market outlook for our longer-term trade ideas.
- Follow Eno on Twitter.
- Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.