The S&P 500 has given up the little gains it attained earlier in the day after a new Fox News poll shows that Democratic Party nominee Joe Biden has widened his lead over incumbent President Donald Trump from 8 points to 12 points. A random sampling survey which President Trump has dismissed as “phoney” showed 45% of respondents strongly disapproved of Trump’s work as president, against 27% and 17% who either strongly approved or somewhat approved Trump’s presidency.
On how Trump has handled the US economy, 49% approved, 46% disapproved, and 4% indicated they did not know. Trump’s worst performance was on race relations scorecard, 61% showing disapproval and only 32% approved.
President Trump’s tenure had seen an unprecedented recovery in the stock markets and US employment, endearing him to Wall Street and investors on the S&P 500. In contrast, Joe Biden has been moderately critical of Wall Street, but nowhere near the open hostility shown by former Democratic frontrunner Bernie Sanders.
President Trump dismissed the poll roundly, citing 2016 polls which indicated a landslide loss for him but which all ended up being wrong. Investors on the S&P 500 do not seem to like the poll outcome, and the index is trading 0.37% lower.
The S&P 500 index was rejected at the 3137.0 resistance, and the pullback is now on. 3070.8 looks like the immediate target for the index, with a breakdown of this zone clearing the pathway towards the support zone which has 2961.4 as its floor and 3028.3 as its ceiling.
In contrast, further upside recovery of the S&P 500 depends on price breaking above the 3228.4 price level, with 3257.8 and 3335.5 being in line as new targets if the S&P advances. A pullback and bounce at any of the support levels may be required to deliver this outcome.