- Summary:
- The S&P 500 index opens higher after Moderna's positive announcement regarding its coronavirus vaccine candidate lifts market sentiment.
The S&P 500 bounced back from intraday losses yesterday to register price gains, which it is consolidating today with a higher open on new coronavirus vaccine hopes.
Moderna Inc announced overnight that data from its new study indicated that its coronavirus vaccine candidate induced a “robust” immune response in all 45 subjects, setting the stage for a critical clinical trial this month. The results were positive enough for investors to push the futures into winning territory overnight. Today, the S&P 500 index has opened higher by 1%, allowing to open very near to the previous highs or two days ago.
The S&P 500 is also getting its positive vibes from upbeat forward guidance from strategists at Goldman Sachs. Goldman Sachs has released a 10-year projection for the index, which they estimate will generate an annual average return of 6% over the next decade. 2012 was the last time Goldman Sachs did such an estimate, projecting an 8% return which was eventually outstripped by 13.6% annualized returns made by the S&P 500 index.
Technical Outlook for S&P 500 Index
The S&P 500 is currently trading at 3223.0. The next resistance is located at 3228.4, which is the level to beat for the uptrend to continue. If the price breaks above this level, then a march towards 3335.5 can be anticipated. 3400 marks the next upside target if the 22/24 January highs at 3335.5 can be surpassed.
On the flip side, failure to breach 3228.4 could lead to a pullback, and if this pullback can drop below the 3137.0 and 3070.8 downside targets (in that order), then the support zone becomes the next target). A breach of the 2961.4 support zone’s floor completes the pattern as a double top, allowing for a measured move that targets a price objective of 2793.4 (38.2% Fibonacci retracement from the swing high of 19 February to the 23 March swing low). For this objective to be accomplished, the price decline that follows the breakdown of 2961.4 must also break down the 2844.3 support.
S&P 500 Daily Chart
