S&P bounces off support
On Monday the S&P 500 put in a strong performance, ending the day over 1% higher above 4,370. This move represented a decent recovery from the sell-off at the end of last week which saw the index fall towards 4,300 before buyers came in ahead of Friday’s close.
Today saw the index pull back again, ignoring some sold Q3 earnings reports. It fell further following the release of some strong Retail Sales numbers. Once again, good numbers being bad as they relate to the probability of the US Federal Reserve raising rates again before the year-end.
While the S&P remains within the upwardly-sloping trendline, it continues to trade much closer to support than resistance. But it is comfortably above the first line of support above 4,300, for now.
While it could easily give back this week’s gains, there’s currently some upside momentum. If this can help push the index significantly above 4,400 over the next few sessions, and then ensure that it holds support around this area, then the bulls will end the week in better shape than they did last Friday.
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