The S&P 500 index has opened sharply higher, as banks and travel stocks lead the charge following the longest weekly losing streak in the index since the recovery began. The Energy Index is also giving a good account of itself this Monday, surging 2.5% as crude oil prices rose 1% today.
The bullish start to the week stems from industrial profits data from China, as well as the new moves to get a coronavirus stimulus package passed before the November 3 presidential election.
Talking about the US presidential election, it is election debate time. The first presidential debate now captures the market’s attention, as the world prepares to see how the two presidential gladiators tackle burning issues affecting the US and global economy, especially the coronavirus pandemic.
The S&P 500 is currently trading at 3341.1.
Technical Outlook for S&P 500
The index may have resumed its rally but needs today’s candle to close above the high of the September 16 candle (the top of the b wave in the a-b-c correction sequence) to set this revival rally going. This expectation will require the daily candle of today to break above the 3335.5 candle and set the index on this pathway. However, only a break above the current record high at 3588.1 re-establishes the recovery of the index.
On the flip side, a drop below 3228.4 re-establishes a short-term decline in the pair. This decline could target 3137.0 and 3070.8, with 3028.3 and 2961.4 also in the mix.
S&P 500 Daily Chart