The S&P500 Futures (CME: ES) have been captivating investors with yet another record-breaking session, reaching a new peak of 5149.25 last week.
This surge reflects the growing interest among traders and investors in index futures. Fuelling this momentum are robust earnings results, particularly in the tech sector, where Artificial Intelligence companies have been thriving.
Factset data reveals that a significant percentage of S&P500 companies have reported positive earnings surprises, surpassing the 10-year average. Impressively, 79% of S&P500 companies have disclosed their Q4 2023 results, with 75% reporting earnings per share above estimates. This flurry of upbeat earnings not only boosts sentiment but also validates the positive outlook surrounding the S&P500 Futures. As investors eagerly anticipate further developments, the index’s performance continues to underscore its significance as a barometer of overall market health and economic sentiment.
Technical
The S&P500 Futures are currently exhibiting a strong uptrend, well supported by its position significantly above the 100-day moving average.
Recent buying activity at the 4959.00 level propelled the index futures higher, establishing this level as a key support zone. However, a slight retreat from the all-time high at 5149.25 suggests a potential weakening of upside momentum. Should this downturn persist, attention may turn to the 100-day moving average as a crucial level of interest to the downside.
Conversely, a breakout above resistance, especially on high trading volume, could signal sustained bullish momentum. In such a scenario, the 23.60% Fibonacci Extension level becomes a potentially noteworthy target to the upside. Market sentiment remains cautiously optimistic, with investors closely monitoring price movements for potential signals of further upward continuation or a reversal in trend.
Summary
In conclusion, S&P500 Futures have surged to record highs, fueled by robust earnings and investor optimism. While supported by a strong uptrend and key support at 4959.00, attention shifts to potential resistance at 5149.25.
Sources: Reuters, Factset, TradingView
Piece Written By Nkosilathi Dube, Trive Financial Market Analyst
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