S&P 500 Gains Ground As Exxon Mobil Tests All-Time Highs

Key Insights

• S&P 500 gained upside momentum at the start of the week as leading energy stocks tested new highs. 
• NASDAQ Composite was mostly flat in a choppy trading session, although some leading tech stocks were trying to rebound. 
• A move above 3805 will push S&P 500 towards the resistance at 3835.

S&P 500 Moves Higher Ahead Of Midterm Elections

S&P 500 gained ground at the start of the week as energy stocks moved higher. The tech-heavy NASDAQ Composite was mostly flat in today’s trading session. Apple, Amazon, and Tesla remained under pressure, while Meta continued to rebound from yearly lows.

Today’s trading has been choppy as market participants were somewhat nervous ahead of the U.S. midterm elections.

From a big picture point of view, the market is slowly rebounding after the recent sell-off. It remains to be seen whether election results will have a significant impact on market mood as Fed’s policy remains the key catalyst for S&P 500.

The relative weakness of tech stocks is alarming as it shows that the market is not ready for a sustainable rebound. In the last three months, energy stocks were the only group that managed to move higher. Other market segments have been under pressure.

If tech remains weak while energy stocks enjoy support, the choppy market behavior will continue. For example, leading oil companies like Exxon Mobil and Chevron are testing all-time highs today, while Tesla is trading at multi-month lows.

S&P 500 Is Moving Towards The Resistance At 3805

S&P 500 settled above the resistance at 3760 and is moving towards the next resistance level at 3805. RSI remains in the moderate territory, and there is plenty of room gain additional upside momentum in case the right catalysts emerge.

If S&P 500 settles above the resistance at 3805, it will head towards the next resistance level at 3835. A successful test of this level will open the way to the test of the resistance at 3885.

On the support side, the previous resistance level at 3760 will serve as the first support level for S&P 500. In case S&P 500 declines below this level, it will head towards the support at 3725. A move below the 3725 level will push S&P 500 towards the support at 3690.

For a look at all of today’s economic events, check out our economic calendar.