The S&P 500 index has opened sharply lower this Friday, after a disappointing report on its coronavirus vaccine candidate by Johnson & Johnson.
According to a report released this afternoon and reported by Reuters, Johnson & Johnson said that its COVID-19 vaccine candidate showed an efficacy of 66% in a global trial. A section of the US trial showed an efficacy rate of 72%.
These data are considered disappointing when compared with other vaccine candidates, as well as the commercially available vaccines from Pfizer and Moderna.
All major sectors of the S&P 500 index opened lower as the disappointment of the data permeated throughout the market.
The breakdown of the channel is the key point of the daily chart of the S&P 500 index. The channel’s lower edge was violated by the candle of Wednesday. Yesterday’s pullback and rejection at this border, followed by today’s downside move has set the stage for a further drop on the S&P 500. This drop initially targets 3721.2, with a good chance of a further decline towards 3645.4. 3588.6 and 3528.9 are additional targets to the south.
On the other hand, a bounce off 3721.2 allows for a retest of 3765.1, with a break of this area allowing bulls to attempt a run towards the all-time highs at 3870.9. The continuation of the uptrend will result from a break above 3870.9.