Cuts Monday’s losses and more, recovers to the 4,700 level after upbeat US economic data.

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  • The S&P 500 advanced 0.51% to 4,706.87.
  • The Dow Jones is up 0.50%, currently at 36,270.40.
  • The Nasdaq High-Tech Composite is up 0.65% to 15,957.49.

The S&P 500 it rises during the American session, rising 0.51%, currently at 4,706.87 at the time of writing. As portrayed by the major US equity indices, market sentiment is bullish, increasing between 0.50% and 0.65%. Positive macroeconomic data from the US spurred a rally in US equities as retail sales rose to a new seven-month high, doubling the September reading.

In the American session, the US Retail Sales for October were released, showing an increase of 1.7%, higher than the 1.4% estimated by analysts, breaking the 0.8% of the September figure. Also, excluding Automobiles, sales for the same period expanded at the same rate as the headline, 1.7%, higher than the 1% expected.

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Consumers drove sales to their most significant jump in seven months. However, it is worth noting that the figures are not adjusted for price changes due to higher prices. At some gas stations, the bill rose almost 4%, its highest level since March, reflecting the rebound in energy prices in recent months.

By sectors, consumer discretionary, technology and health advanced 1.29%, 0.90% and 0.73%, respectively. On the other hand, the main losers are public services, real estate and basic consumer goods, with a fall of 0.48%, 0.47% and 0.42% each.

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S&P 500 Price Forecast: Technical Outlook

The daily chart shows that the S&P 500 has an upward bias, confirmed by the daily moving averages (DMAs) well located below the value of the index, with an upward slope. However, the Relative Strength Index (RSI) is at 70, well within overbought conditions, suggesting that a lower correction could occur.

At press time, it is testing the all-time high at 4,716, which in the event of a daily close above the latter, would expose 4,800 as its next resistance area.

On the other hand, in the case of a correction, the first support would be the October 26 high at 4,598.53 that converges with the 78.6% Fibonacci retracement as the first support level. As a result of a deeper correction, the October 27 low of 4,553.53.

S&P 500 TECHNICAL SUPPORT / RESISTANCE LEVELS

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