S&P 500 Rallies As Traders Focus On Nike’s Results And Consumer Confidence Data

Key Insights

• The better-than-expected CB Consumer Confidence report provided significant support to S&P 500.
• Nike’s strong results served as an additional catalyst for the move. 
• A successful test of the resistance at 3900 will push S&P 500 towards the next resistance level at 3935.

S&P 500 Continues To Rebound After The Strong Pullback

S&P 500 moved towards the 3880 level as the strong rebound continued. NASDAQ Composite was up by more than 1.70% in today’s trading session.

A technical rebound after the strong pullback served as the main catalyst for today’s move. Stocks were also supported by the better-than-expected CB Consumer Confidence report.

Meanwhile, traders ignored the disappointing Existing Home Sales report, which indicated that Existing Home Sales declined by 7.7% month-over-month in November.

Today’s rally is broad, and all market segments are moving higher. The rebound is led by energy stocks, which enjoy strong support as WTI oil and natural gas are moving higher.

Nike gained 13% after the company’s quarterly report easily beat analyst expectations on both earnings and revenue. Nike’s strong performance has also provided support to S&P 500.

S&P 500 Heads Towards The Resistance At 3900

S&P 500 managed to get above the resistance at 3860 and is moving towards the next resistance level, which is located at 3900. RSI remains in the moderate territory, and there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

If S&P 500 manages to settle above the 3900 level, it will head towards the 50 EMA at 3915. A successful test of the resistance at the 50 EMA will push S&P 500 towards the next resistance level, which is located at 3935.

On the support side, the previous resistance at 3960 will serve as the first support level for S&P 500. If S&P 500 declines below this level, it will move towards the next support at 3840. A successful test of the support at 3840 will push S&P 500 towards the support at 3815. If S&P 500 gets below this level, it will head towards the next support level at 3800.

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