The S&P 500 index has resumed from the US Presidents’ Day holiday with bulls picking up from where they left off the previous week. The S&P 500 index has touched off new highs, following impressive gains in financial and energy stocks.
Surging US bond yields provided a boost to stocks listed under the Financials sector while rising crude oil prices that are now trading at 13-month highs gave a fillip to energy stocks.
The S&P 500 index is up by 0.07% as of the time of writing.
Technical Outlook for S&P 500
The S&P 500 is now at the upper end of the ascending channel that has been the guiding light for bullish action on the S&P 500 following its breakout of the symmetrical triangle in November 2020.
The asset is now trading close to the 161.8% Fibonacci extension at 4005.9, and this level is expected to be the next resistance in line once the price breaches the 4,000 psychological barrier. Above this level, the 200% Fibonacci extension at 4301.00 could be a target further down the road.
On the flip side, failure to breach 4000 could lead to a profit-taking selloff, especially as the price is closing in on the projected measured move from the triangle breakout. The first downside target to any pullback would be 3870.0, with further downside targets at 3765.1 and 3721.2 respectively. 3588.1 and 3528.9 are additional targets to the south that need a steep decline in the S&P 500 to become relevant once more.
S&P 500 Index; Daily Chart