The S&P500 was looking to open Thursday trading by vaulting above the resistance level that marked the February pre-virus highs. The index has since traded higher than this but yesterday signaled potential resistance there.
Global stocks are higher after some positive economic data releases, alongside hopes for a fresh round of U.S. government stimulus. Strong manufacturing data was the theme of the day with Germany, the U.K. and Australia all showing positive numbers. The U.S. markets are still buoyed by yesterday’s ADP employment beat, which could signal strong Non Farm Payrolls numbers set to be released on Friday.
The market will turn its attention to U.S. Manufacturing PMIs but this is likely to match the other developed economies with a strong reading for September. The other key releases today will be PCE numbers, which could lead to inflationary talk. Jobless claims will also provide another hint for tomorrow’s NFP release.
Democrat Speaker of the House Nancy Pelosi and US Treasury Secretary Steven Mnuchin have held a series of talks on a potential stimulus this week, which were said to be “hopeful” after weeks of stalemate..
Reports have said Republicans will start talks around the $1.5 trillion level and see where they can find common ground up to the Democrats’ $2.2 trillion plan. Another round of stimulus checks could find their way into stocks again after retail traders piled into markets, with the Robinhood platform being a key beneficiary.
S&P500 Technical Outlook
The S&P500 is testing resistance at the February high, which marked the pre-virus top in markets. U.S. stocks are pointing to a bullish open so the index will trade above this and support at this level will be key to another push higher. The ATFX Q4 Market Outlook is now available for free download.
S&P500 Daily Chart