S&P 500 Posts Modest Gains, But Remains Below 3500 As Stimulus Talks Continue

Summary:

Upside momentum remains weak due to lack of follow-through buying on the S&P 500, which keeps price action below 3500 as stimulus negotiations continue.

Buying pressure remains low as hopes for a stimulus fade with each passing day. Investors on the S&P 500 index continue to wait upon a stimulus deal, and price action continues to follow stimulus talks closely.

Republicans and Democrats are said to be in last-ditch talks to produce a stimulus deal with just two weeks to the US elections. So far, nothing concrete has been agreed, even though WH Spokesperson Allysa Farah indicates that she is “cautiously optimistic” that a deal will be reached. Farah’s comments provided minimal positive sentiment, which has helped the S&P 500 to a 0.3% gain.

Technical Outlook for S&P 500

The bearish harami needed a strong outside day candle to establish a continuation of the recovery movement. Today’s daily candle has failed to provide that momentum as a lack of follow-through buying plagues the index. 3418.6 remains the immediate upside target on the S&P 500 index, with 3528.9 forming an additional resistance target.

Failure to establish more significant upside momentum could lead to a price decline, which initially targets 3393.5, with 3335.5 forming the next downside target.