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S&P 500, Nasdaq 100 rise while traders weigh economic resilience against geopolitical risks


US OUTLOOK:

  • S&P 500 jumps 1.43% and regains its 200-day simple moving average
  • Nasdaq 100 rises by 2.2% at the market close and reaches the highest level since 11 Februaryste.
  • In this article we explore key technical levels for the S&P 500 and Nasdaq 100

Most read: DAX 40 and CAC 40 Technical Forecast for the Days Ahead

Wall Street Stock Indices shot up on Thursday,wiping out losses from the previous session as traders shook off the new sanctions the West imposed on Russia, shook off Fed jitters and welcomed several encouraging U.S. economic reports.

At the close of the market, the S&P 500 rose 1.43% to 4520,recovery of its 200-day simple moving average thanks to a solid rally driven by strong profits in semiconductor and material stock. The Dow Jones in turn climbed 1.02% to 34,707but could not push above channel resistance in the 34 850 area. Finally, the Nasdaq 100 outperformed its peers. 2.2% to 14.765its best level since February 11as a sell-off in oil prices eased inflation anxiety.

Earlier in the day, U.S. employment figures showed this. unemployed claims for the week ended March 19 fell by 28,000 to 187,000 applications, the lowest level since September 1969. The report, which tends to be a power of attorney for retrenchments, indicates that the labor market remains strong while companies are desperately trying to to hold workers amid almost record jobs.

The good news did not end there in terms of positive data. In another report, S&P Global noted this growth accelerated sharply this monthwith the manufacturing PMI reaches a six-month high of 58.5 and the services activity index rises to 58.9, the fastest pace since June last year. Recently, the yield curve flattened has exacerbated recession fears, but solid expansion in these two sectors of the economy certainly helps calm some of those concerns.

Looking ahead, the economic calendar contains some medium-impact events on Friday, including the Michigan Consumer Sentiment Survey and some Fedspeakbut next week’s deck brings more important releases, withMarch Non-Farm Payroll (NFP) be the highlight. As the outlook remains subject to extraordinary uncertainty between monetary policy risks and geopolitical shocks, traders need to keep an eye on incoming data to determine how the economy develops and responds to current winds.

S&P 500 TECHNICAL ANALYSIS

After Wednesday’s withdrawal, dip buyers reappeared, pushing up the S&P 500 decisive above its 200-day simple moving average and the 50% Fibonacci retracement of the 2022 drop. With the VIX falling fast and the 20 approaching– handlethere will be more appetite to take more risk, a situation that may allow it stock market bulls to stay on the offensive. On that note, the S&P 500 can gain more momentum in the coming sessions, ready for a challenge from the 61.8% Fib level near 4,550followed by 4,585. Alternatively, if the bullish thrust fade and sellers return, the 200-day SMA should serve as a decent support in case of weakness, although a break under this floor a big selling, exposing 4,420, and 4,285 thereafter.

S&P 500 TECHNICAL CARD

S&P 500 (SPX) Chart by TradingView

NASDAQ 100 TECHNICAL ANALYSIS

The Nasdaq 100 rose aggressively on Thursday, reaching a new monthly high above 14,700. With bulls firmly entrenched in the driver’s seat, we may see additional gains in the days ahead and a possible move to 14,901, the 50% Fibonacci retracement of the November 2021 / March 2022 sales. If the technological benchmark succeeds in venturing this resistance to the top, the 200-day simple average will become the next upward focus. On the other hand, if prices turn lower, technical support rests at 14,458 / 14,360, but if this area does not hold, there is room for a pullback to 14,050.

NASDAQ 100 TECHNICAL CARD

S&P 500, Nasdaq 100 rise while traders weigh economic resilience against geopolitical risks

Nasdaq 100 (NDX) Chart Prepared in TradingView

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— Written by Diego Colman, Contributor

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