S&P 500 Targets 3400 Following Upbeat US Economic Data

The S&P 500 has surged to a higher open as investors applauded upbeat economic data out of the US this Wednesday. The S&P 500 is trading at 1.04% higher on the day, notching up 24.4 points at the time of writing to climb to 3369.0. This follows yesterday’s losses on the S&P 500 index.

InvestingCube's S&R Levels

NAS100

NAS100 (11324.8)

In Profit

STOP

SELL

TP1

11478

TP2

11338

Upbeat data from the ADP showed improved private-sector hiring. Final GDP figures, which were slightly lower than expected, have also helped investors generate demand on the index’s stocks. The US Presidential Debate was expected to provide some market direction but fell short on policy details in an event marred by rhetoric, abrasive comments and attacks from both sides. 

Investors found solace in ADP Employment Change data which showed an addition of 749K jobs in September, versus the consensus of 650K and an upward revision of the previous number to 481K. Final GDP q/q came in at -31.4%, versus the consensus number of -31.7%. 

However, the S&P 500 looks set to close out the 3rd quarter of 2020 higher, despite a lot of choppy movements as the market continues to navigate its way around the coronavirus-induced economic meltdown which has so far, shown minimal signs of improvement and continues to remain in a recession. 

Technical Outlook for S&P 500

The S&P 500 index is trading on the full bid as it pushes towards the 3393.5 price level, following the bounce from the 3335.5 support line. A break of 3393.5 opens the door towards 3481.6, with 3528.9 in the horizon as a potential future target. 

On the flip side, a rejection at 3393.5 allows 3335.5 to come into the picture, with 3282.2 and 3228.4 lining up as potential support areas. 

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S&P 500 Daily Chart

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