The S&P 500 opened modestly higher on Wednesday as industrial stocks posted strong gains, buoyed by upbeat Flash Manufacturing PMI data. US Flash Manufacturing PMI data indicate that business conditions in the US manufacturing sector improved slightly, with a reading of 53.5 as opposed to the previous month’s 53.1. This figure was also better than market expectations of 52.5.
InvestingCube's S&R Levels
The modest rise in the S&P 500 follows a day that has US markets trading on a mixed note, as markets await the testimony of US Fed Chair Jerome Powell before a House Select Committee on the impact of the coronavirus pandemic. As at the time of writing, the S&P 500 index is trading flat at 3323.4. The Industrials index component of the S&P 500 is currently the day’s top performer, up 0.8% on the day.
Technical Outlook for S&P 500
The S&P 500 index is now starting to experience a slight retreat as US Fed Chair Powell opens his testimony. This move puts the index above the 3282.2 support, but just below the 3335.5 resistance level, which remains the price to beat for bulls. A look at the market structure supports further upside on the pair, but the attainment of the 3393.5 price target relies on a break above 3335.5. 3481.6 and 3528.9 remain price targets to the north that stand as barriers to the all-time high of 3588.1.
On the flip side, a weakening of the index which defeats the support at 3282.2 price level allows for a decline towards the 21 September low at 3228.4. The price levels of 3137.0 and 3028.3 remain potential targets to the downside.