Nasdaq
The S&P 500 index has opened sharply higher this Thursday, buoyed by a 3rd straight day of impressive gains on the technology stocks. Ten out of the eleven indices on the S&P 500 are in positive territory as a slew of positive fundamentals has opened the door for risk flows to dominate the financial markets.
The Technology and Communication indices are up more than 1%, as the US House of Reps passed the $1.9 trillion stimulus bill. Furthermore, the Initial Jobless Claims numbers came in at 712K, marking the lowest it has ever been since the pandemic broke out.
Today’s upside gap has given the S&P 500 a gain of 0.62%, further extending the violation of the descending trendline resistance. A higher close confirms the break of the trendline and allows the index to aim at the previous all-time highs at 3950.4. If this level is uncapped, 4005 could come into focus as a potential new target for bulls.
On the other hand, rejection at 3950.4 makes a pullback towards 3870.0 a possibility. However, downside targets at 3823.9 and 3765.1 become more viable if the descending trendline is degraded in its role-reversed function.
