Nasdaq
The S&P 500 futures posted an excellent recovery move today after a healthy gain in technology shares. Re-emerging risk flows seem to be taking the S&P 500 higher on this Veterans Day Holiday, as the Technology Index gained nearly 2%.
A quiet market session has seen the futures on the S&P 500 post a gain of 0.8% as at the time of writing, as all major equity index futures gained on Wednesday.
Today, Goldman Sachs posted an optimistic projection for the S&P 500 index, saying it expected the index to add 11% to its value by mid-2021 if a coronavirus vaccine is deployed and corporate profits stage a rebound. The bank consequently lifted its price target for the S&P 500 to 3700 in the near term, and 4100 by mid-2021.
Yesterdays doji candle that formed at the support provided by the triangle’s upper border and the 3528.9 support needed a follow-through candle to dictate direction. Today’s upside gap seems to have provided the answer that bulls wanted. However, more vigorous bullish momentum is required to test the previous record at 3588.1. Above this level, the all-time high set on Monday at 3646.0 would be a natural target, but not before the 3600 psychological resistance comes into play.
On the flip side, we need to see a breakdown of 3528.9 for 3481.6 to become a new target. This move also brings the price back into the triangle and gives sellers a chance to target 3393.5 and possibly 3335.5 as the immediate downside targets. Downside resolution of the triangle requires a breakdown of the support at 3228.4. This is at the moment, an outside possibility given the prevailing market sentiment.
