S&P 500
The S&P 500 continues to trade in the green in today’s trading, albeit at a more modest pace. As of this writing, the US stock index is up by over 30 points or 1.27A% at 2,693.2.
Leading gains are Mallinckrodt with a 36.31% uptick. It is followed by Noble Energy with a floating profit of 32.51%. Then in third place is Tenet Healthcare which is up by 19.20%.
There are no new catalysts in the financial markets so far today. Risk appetite continues to linger on the slower rate of increases in the global tally of confirmed coronavirus cases and death toll. With this said, it will not be too surprising to see equities give up their gains soon. That is, until more positive developments on the coronavirus pandemic hit headlines.
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On the 4-hour time frame, it can be seen that the S&P 500 has recently formed higher lows following a series of lower highs. Consequently, an inverse head and shoulders pattern has become apparent. While the stock index is already trading above the neckline, it is not uncommon for markets to retest it. In fact, by connecting the recent lows on the S&P 500, it can be seen that the stock index may have more room to trade lower. Trendline support is around 2,615.30 which also coincides with the area between the 38.2% and 50% Fib levels (when drawing the Fibonacci retracement tool from the low of April 2 to the high of April 8).
On the other hand, if there are enough buyers in the market, we may not even see a deeper pullback on S&P 500. A break of yesterday’s highs at 2,755.33 could mean that the stock index may be on its way to its February 28 highs at 3,121.20.