The S&P 500 has opened on a higher note as the number of initial jobless claims dropped below the 1 million mark for the first time since the numbers skyrocketed at the start of the domestic coronavirus epidemic in the US. This figure, along with last week’s better-than-expected jobs numbers, could be a sign that the labour market in the US is starting to turn a corner.
Initial jobless claims, shrunk to 963K. This is an improvement from the previous level of 1191K registered last week (an upward revision), and lower than the market expectations of 1120K in what has been the second week of decline. Furthermore, continuing jobless claims have also dropped to a new pandemic low of 15.49 million, down by 604,000 (seasonally adjusted). The S&P 500 is up 0.02% to trade at 3381.1 as at the time of writing.
Technical Outlook for S&P 500
The index continues to test the upper border of the rising wedge, and today’s price candle is also pushing to test the 3393.5 resistance, which is the current all-time high attained in February 2020. There are two possibilities. If the price breaks above the 3393.5 price level, it will hit new record highs.
However, a rejection at that price could send the S&P 500 lower, targeting the support at 3335.5, which also marks the point of intersection with the lower wedge border. A breakdown of the wedge allows the S&P 500 bears the chance to aim for the 3228.4 price level, with 3137.0 and 3070.8 remaining as downside price targets that are getting more distant by the day.