- The S&P 500 rises 0.75% when the American session begins.
- As the Santa Rally spreads, the Dow Jones and the Nasdaq rise between 0.39% and 1.16%.
- S&P 500 Price Forecast: Has a bullish bias as buyers have leaned towards the 50 and 100 DMA to open new long positions, as shown on the daily chart.
The S&P 500 it rises as Wall Street opens, up 0.75%, standing at 4,766.02 at the time of writing. Market sentiment has improved, despite concerns about the Omicron variant that caused the cancellation of more than 3,000 flights on Christmas weekend due to quarantine measures and staff shortages.
That said, the other two largest stock indices on Wall Street, the Dow Jones Industrial and the high-tech Nasdaq, are up between 0.39% and 1.16%, currently at 36,089.50 and 16,496.92, respectively.
The most affected stocks were airplanes and cruise ships, led by Delta Air Lines and United Airlines each fell 2.1%, while American Airlines fell 2.4%. In the cruise line sector, Carnival fell 3.1%, followed by Royal Caribbean and Norwegian Cruise Line, each falling 2.8% and 4%.
By sector, the most important winners are technology, communication services and discretionary consumer, with an increase of 1.42%, 1% and 0.96%, each.
S&P 500 Price Forecast: Technical Outlook
The S&P 500 has a bullish bias from a technical perspective, as shown by the daily moving averages (DMAs) which are well below the value of the index, with the 50 and 100 DMA acting as dynamic support levels.
Throughout the year, the 50 DMA broke “strongly” in mid-October, although the bulls regained control and pushed the price higher. The 100 DMA also broke on the aforementioned date, since then it has been solid support in which equity bulls lean in to open new buy orders, pushing the index towards all-time highs.
To the upside, the first resistance would be 4,800. A breach of the latter would expose 4,900 and 5,000.
On the other hand, the first support would be the daily maximum of December 18 at 4,749.73. A break below that level would expose the 50 WAD at 4,642.40, followed by the December 20 high of 4,527.82.
Technical levels
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