The S&P 500 index surged to new highs on Thursday, following a drop in the initial jobless claims figures for the week ended June 26.
According to the US Department of Labor data, the number of first-time applicants for unemployment benefits fell from 415K the previous week to 364K. This figure was less than the market consensus of 388K and is the lowest that this number has been since the onset of the COVID-19 pandemic in March 2020.
Rallying crude oil prices helped shares listed in the S&P 500’s Energy Index to lead the charge, notching 1.9% as of writing. The Financials Index is currently up 0.47%.
The stellar initial jobless claims data has helped boost sentiment on the S&P 500 ahead of tomorrow’s Non-farm Payrolls report. Traders and investors would be watching to see if public sector employment improves to an extent where the Fed may start to consider early tapering.
Technical Levels to Watch
The redrawn Fibonacci extension levels from our previous charts start at the 25 March low, move to the 7 May high, and end at the 19 May low. The recent upsurge puts the price past the 4301.30 resistance identified in several previous articles, converting this level into new support. Price is now aiming for the 4368.25 price mark (78.6% Fibonacci extension) as the new resistance mark.
On the flip side, a decline below 4301.30 allows the price to target the 4257.90 support (15/23 June highs), with 4220.63 and 4200 serving as additional targets to the south.