NASDAQ Composite moved towards the 11,100 level.
S&P 500 rebounded towards the 3975 level as risk appetite increased. Today, traders had a chance to take a look at the Initial Jobless Claims report, which indicated that 230,000 Americans filed for unemployment benefits in a week. The report met analyst estimates and had little impact on market dynamics.
Treasury yields are moving higher today, but traders ignore this move and focus on the opportunity to buy stocks after the recent pullback.
The rebound is led by technology stocks. NVIDIA, Seagate, and Intuit are among the biggest gainers in this market segment.
Today’s upside move is broad, and most market segments are moving higher. Meanwhile, energy stocks are mostly flat as WTI oil remains under pressure despite the potential rebound of oil demand in China.
From a big picture point of view, today’s trading action looks like a normal rebound after the strong pullback. Market’s optimism will be tested on Friday, when traders will focus on PPI reports for November and preliminary Michigan Consumer Sentiment data for December.
S&P 500 received strong support near the 50 EMA at 3915 and moved towards the resistance at 3975. In case S&P 500 manages to settle above this level, it will head towards the next resistance at 4000. A successful test of the resistance at 4000 will open the way to the test of the next resistance at 4015. If S&P 500 gets above this level, it will continue its rebound and head towards the resistance at 4040.
On the support side, the nearest support level for S&P 500 is located at 3960. If S&P 500 moves below 3960, it will head towards the next support at 3940. A successful test of this level will push S&P 500 towards the important support level at the 50 EMA at 3915. In case S&P 500 manages to settle below the 50 EMA, it will have a good chance to develop strong downside momentum. In this case, S&P 500 will head towards the next support at 3890.
For a look at all of today’s economic events, check out our economic calendar.
Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.