S&P 500 Index: Is 4453 the Next Potential Upside Target?

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Written By: Eno Ikenna Eteng

Aug 03, 2021, 18:58 BST 18:58

Nasdaq

Summary:

The S&P 500 index is trading higher as risky sentiment returns to the market. The drop in long-term bond yields is also boosting stock market sentiment.

The S&P 500 index is trading higher after a surge in healthcare stocks lifted the index. Shares listed in the healthcare subsector rose 0.78%, as did the Financials (0.83%) and Real Estate (0.10%) sectors. Even the Energy index, which started negatively, eventually rallied to gain 1.40%.

Shares of tech giant Apple was also a standout performer among the stocks listed in the Technology index, gaining 1.62% on the day. The continued fall in long-term US bond yields is also helping drive investment flows into the US markets.

The S&P 500 index is trading 0.58% higher as of writing.

Technical Levels to Watch

The intraday bullish move is targeting a retest of the 26 July high at 4422. A break of this area allows the S&P 500 index to aim for the 4453 price mark, where the 100% Fibonacci extension level is found. Above this level, 4561 (127.2% Fibonacci extension) forms another potential barrier to the north.

On the flip side, a decline below the 4393 price mark (13/14 July highs) targets 4368, with 4324 and 4275 serving as potential targets to the south. If the correction extends deeper, 4257 and 4220 may come back into the picture.

S&P 500 Index: Daily Chart

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Written By: Eno Ikenna Eteng

Eno's work as a technical analyst and author since 2009 is well recognized in the industry and on several freelance platforms. He is also a member of the prestigious UK Society of Technical Analysts and a top-ranked participant in the Basic Investment Banking and Asset Management simulations with Amplify Trading.