S&P 500 Set to Attempt a New Record By Targeting 3900

Summary:

The S&P 500 index looks set to challenge the previous all-time high at 3870, with a break setting a new record that could target 3900.

The S&P 500 was a big winner this Thursday data from the US Department of Labor showed that fewer Americans applied for unemployment benefits for the first time than expected.

Numbers from the initial jobless claims data for the week ended January 30 showed that first-time out-of-work Americans filed 779K claims as opposed to the 828K that analysts had predicted. The previous week’s numbers were revised lower to 812K. The four-week average also fell marginally.

The Chief Economist at Pantheon Macroeconomics believes that as the services sector in several states reopens, the number of initial jobless claims will continue to drop steadily, on the condition that vaccinations kick in to slow the spread of the coronavirus.

The S&P 500 index is up by 0.74% presently.

Technical Levels to Watch

All eyes are now on a retest of the all-time high at 3870.9. The bullish march of the day is just short of this level. A break of this price mark opens the door towards the 161.8% Fibonacci extension at 4005.9.

On the other hand, a rebuff of the bulls at 3870.9 could lead to a pullback towards 3765.1. A further dip could also target 3721.2 or 3645.4.