- Summary:
- The S&P 500 Index has opened slightly higher on low trade volumes, as investors weight the impact of the latest inflation gauge data.
The S&P 500 Index kicked off the day with muted open to the upside, as investors consider the latest inflation gauge data. The Healthcare index has recorded the day’s best performance so far after the UK approved Johnson & Johnson’s single-dose coronavirus vaccine. But dwindling US long-term bond yields are pushing back the Financials Index, even as the Core Personal Consumption Expenditures (PCE) Price Index rose by 3.1% yearly from 1.9% in March (consensus 2.9%).
This inflation gauge seems to have dominated the sentiment in the S&P 500 index, accounting for its muted upside open. Investors are also watching for relevant details from the US President’s budget speech for the 2022 fiscal year.
Credit Suisse is once more lending its voice to the price action on the S&P 500 index. The bank expects the index to maintain the upside bias within a broader range of consolidation if the 4169/4171 price level holds firm.
The S&P 500 index is currently trading at 4212.83 as of writing, up 0.28%.
Technical Outlook for S&P 500 Index
The 4220.63 resistance remains the level to beat for bulls, for a continuation move from the double bottom to approach further resistance targets at 4238 and 4260 (as per Credit Suisse).
On the flip side, an inability to clear 4220.63 allows for a corrective decline that targets 4176.61, with a breakdown of this level opening the door for a further move towards 4150.37. Additional targets to the south are seen at 4120.48 and potentially 4082.72.
S&P 500 Index; Daily Chart
