S&P 500 Index May Head Lower Before Hitting New Highs

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Written By: Eno Eteng (MSTA)

Feb 09, 2021, 17:02 GMT 17:02

Dow Jones

Summary:

The S&P 500 index could be set for a lower spell before retaking new record highs in a week with sparse fundamental indicators.

The S&P 500 index took a break from yesterday’s all-time highs and is now a tad lower. The dip occurred despite markets receiving a huge dose of risk-on sentiment, as investors in the US markets continue to have some jitters about surging coronavirus infection rates in the US and the impact on the US labor market.

The JOLTS report issued by the US Department of Labor shows that despite an increase in new openings and hirings, layoffs also increased. Today’s muted but bearish price action can be viewed as a form of re-evaluation of positions before further action is taken.

The S&P 500 is down 0.12% at the moment.

Technical Outlook for S&P500 Index

A muted day of trading, mostly on the bearish side, has sent the S&P 500 index slightly lower, just short of yesterday’s new all-time high at 3915.8. Continuance of the uptrend depends on price finishing with a closing penetration above that level. This potentially opens the pathway towards

On the flip side, a bounce from the present support could allow the USDRUB push towards 74.52, with 75.48 and 75.974 serving as additional targets to the north.

S&P 500 Daily Chart

Written By: Eno Eteng (MSTA)

Eno is a certified financial technician and member of the UK Society of Technical Analysts. He loves to trade and write about stocks, Forex, and CFDs. Since 2009, he has consulted several financial companies as a trader and strategy developer. His work can be seen on several forex blogs and trading educational websites.