Nasdaq
Uninspiring US data did nothing to stop investors on the S&P 500 index from remaining bullish, as the markets drew strength from Federal Reserve officials who dispelled any notions of hawkish actions arising from rising US consumer inflation.
The S&P 500 index had fallen steeply on Wednesday, as the sharp rise in US consumer price index data raised fears that the Fed would be forced into early tapering or rate hikes, a market-negative event.
However, Fed officials have quickly moved to dispel all these notions, reiterating the Fed’s commitment to remain dovish until specific employment targets were met. This allowed the S&P 500 to recover on Thursday, followed by a further advance on Friday despite weak retail sales and industrial production data. As of writing, the S&P 500 Index was 1.24% in the green territory. All major sectors of the S&P 500 trade were in positive territory.
The active daily candle is challenging the 4150.4 resistance. If this level is uncapped, 4176.6 becomes the next target, after which an advance takes the index to the psychological resistance at 4200. 4238.00 remains the all-time high and is the barrier that needs to give way for 4260 (as per Credit Suisse) and 4301.00 come into play.
On the flip side, a failed break of 4150.4 could allow for a correction, targeting 4120.5 and potentially 4082.7 if the decline continues. Additional targets to the south are found at 4032.4 and 4000.00, respectively.
