S&P 500 Touch Record Highs – Fear and Greed Index Hits 71

Summary:

S&P 500 started on positive foot after better than expected earnings reports from the retailers and better housing data. Home Depot reported a 23% increase

S&P 500 started on positive foot after better than expected earnings reports from the retailers and better housing data.

Home Depot reported a 23% increase in 2Q sales as consumers turn to home improvements during the coronavirus lockdown. Earnings per share came at $4.02 while the revenue came at $38.05 billion beating Wall Street expectations.

Walmart reported adjusted earnings of $1.56 per share and revenue of $137.74 billion. Both figures beat the consensus estimates. The online sales almost doubled during the lockdown.

Amazon announced that it would add 3,500 jobs in six cities. Two thousand new jobs will be created for the Lord & Taylor building in New York bought for one billion from WeWork.

On the economic data, the United States Housing Starts Change jumped to 22.6% in July from 17.3% in June. The Building Permits came in at 1.495M topping the forecasts of 1.32M in July and have reached the 2019 levels. The Building Permits Change climbed to 18.8% in July from the previous 2.1%.

Fear and Greed Index Ease at 71

The fear and greed index stands at 71 today one point lower from yesterday amid the rising tensions between China and the USA. The fear and greed index continues inside the greedy territory, as Wall Street indices are heading for fresh record highs.

S&P 500 Technical Analysis

S&P 500 started higher the session targeting a close today above all-time highs. The previous record close was 3,393.52 and is the primary resistance today. As of writing the index touched the record high but now is 0.13% higher at 3,389. Bulls are in control of S&P 500, and if the index closes above the record highs, then the next resistance is at 3,400 round figure.

Failure to close today above the record highs might trigger some profit-taking. First support is at 3,376 today’s low. The next level to watch for the S&P 500 on the downside is 3,330 the low from August 12. What can cancel the bullish momentum is a close below the 50-day moving average at 3,205.