Despite a bullish start to the day, the S&P 500 index now finds itself in negative territory due to the downbeat consumer confidence data.
According to Conference Board Inc, the consumer confidence index in the US fell from 117.5 (a downward adjustment) in April to 117.2. This was a shortfall as the consensus was for the reading to increase to 119.0.
As of writing, the S&P 500 Index was marginally lower at -0.03%. The Financials Index is up 0.21% as investors in bank stocks cheer the Fed’s recent rhetoric.
Also putting the S&P 500 index is The Richmon Fed’s Manufacturing Index, which climbed slightly from 17 to 18 but was lower than the market consensus of 19.
Technical Outlook for S&P 500 Index
The S&P 500 index is challenging the resistance at 4200. This resistance needs to be uncapped for 4220 to come into play. The upside move is part of the expected measured move from the break of the neckline of the double bottom formation. The 200% Fibonacci extension of the 20 March to 10 April 2020 price swing at 4301 could be the price projection point but must take out 4260, a futuristic resistance set by Credit Suisse.
On the other hand, a pullback from present levels encounters a downside barrier at 4176.61, where the double bottom’s neckline is found. A breakdown of this price point brings 4150.37 and 4120.48 into the mix. The bottoms are found at 4082.72. Below this level, the pattern is invalidated. However, a bounce at this level converts the pattern into a triple bottom pattern, allowing the price to evolve once more to the upside.
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S&P 500 Index; Daily Chart
