The S&P 500 index has had a muted open to the week, as traders approach the markets cautiously following the weak jobs numbers of Friday. The S&P 500 had set a new record high after the weak jobs report pointed to the Fed maintaining the stimulus packages for an extended period. This scenario supports bullishness for the US markets.
With no major economic data due for release until Wednesday’s CPI data, the S&P 500 index could be subject to low volumes on the first trading day of the week.
Analysts at Credit Suisse have lent their voices once more to the price action on the index. Having called the 4200 and 4225 price targets following the break of the large symmetrical triangle on the daily chart, Credit Suisse’s analysts forecast a push towards the 4256/4260 price levels on a break of 4240. The bank also sees a drop to 4180 and potentially 4147/4141 if there is a rejection at 4238/4240.
The S&P 500 index presently trades at 4229.7.
Technical Outlook for S&P 500
Friday’s highest price at 4238 constitutes the all-time high and is the resistance to beat for bulls, as per Credit Suisse’s analysis and the picture on the daily chart.
We need to see a break of this level for the index to experience a push towards the 4301.0 (200% Fibonacci extension price point), with an intervening barrier at 4260.
On the other hand, we could see a correction towards 4176.6 if the S&P 500’s bullish run falters. Additional targets at 4150.4 and 4120.5 are seen below this level, as are 4082.7 (8 April low) and 4032.4 (5 April low).