S&P 500 Posts Modest Gains, But Remains Below 3500 As Stimulus Talks Continue

Buying pressure remains low as hopes for a stimulus fade with each passing day. Investors on the S&P 500 index continue to wait upon a stimulus deal, and price action continues to follow stimulus talks closely. 

InvestingCube's S&R Levels

NAS100

NAS100 (11324.8)

In Profit

STOP

SELL

TP1

11478

TP2

11338

Republicans and Democrats are said to be in last-ditch talks to produce a stimulus deal with just two weeks to the US elections. So far, nothing concrete has been agreed, even though WH Spokesperson Allysa Farah indicates that she is “cautiously optimistic” that a deal will be reached. Farah’s comments provided minimal positive sentiment, which has helped the S&P 500 to a 0.3% gain.

Technical Outlook for S&P 500 

The bearish harami needed a strong outside day candle to establish a continuation of the recovery movement. Today’s daily candle has failed to provide that momentum as a lack of follow-through buying plagues the index. 3418.6 remains the immediate upside target on the S&P 500 index, with 3528.9 forming an additional resistance target.

Failure to establish more significant upside momentum could lead to a price decline, which initially targets 3393.5, with 3335.5 forming the next downside target.

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S&P 500 Daily Chart

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