The S&P500 Futures (CME: ES) have recently scaled unprecedented heights, marking a fresh all-time high in the previous week. This achievement was propelled by back-to-back weeks of gains, with a robust 1.10% surge in the index futures last week.
Notably, the technology, communication services, and industrial sectors took the lead, showcasing impressive performance. Mega-cap technology stocks experienced a notable resurgence, fuelled by an optimistic 2024 outlook from chip giant Taiwan Semiconductor Manufacturing Co. (TSM).
This surge not only erased the index futures’ 2024 losses but also underscored the influential role of key sectors in shaping market trajectories. As we navigate the new week, all eyes are on the Federal Reserve’s PCE Price Index release, poised to influence the trajectory of the index futures and offer a glimpse into the broader economic landscape.
Technical
The S&P500 Futures have executed a remarkable turnaround, bouncing back from an early-year downtrend to establish a resilient uptrend, now trading above the 100-day moving average. This upward trajectory gained validation through a substantial high volume breakout above the once-resistance-now-support level of 4841.50.
The inception of this resurgence can be traced back to the 4746.25 level, marked by oversold RSI conditions that catalysed the breakthrough. The potential for further upward momentum is underscored, with the 61.80% Fibonacci Extension Golden Ratio emerging as a prospective point of interest. However, a retest of the 4841.50 level is possible, particularly if bearish pressures resurface amid prevailing overbought RSI conditions.
Summary
The S&P500 Futures, hitting an all-time high, showcase resilience amid sector-driven surges and a broader market rebound. With technology and communication sectors leading, the index’s trajectory, supported by technical indicators like the 100-day moving average and the breakout at 4841.50, reveals potential for further gains. However, vigilance is advised as overbought conditions linger.
Sources: Reuters, Trading Economics, TradingView
Piece Written By Nkosilathi Dube, Trive Financial Market Analyst
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