Business

As traders reassess pandemic risk, the S & P 500 barks higher with Omicron’s optimism.

S & P 500 outlook:

  • US stocks on Tuesday will be COVID-19 Omicron variant terrible As I was afraid at first
  • NS S & P 500 Jump over 2% Very close to the highest ever
  • This article introduces the most important technical levels of the S & P 500 that should be noted in the short term.

Read most: Apple, Nasdaq, ARKK jump as sound support in China: Is Santa Rally here?

US stocks rose for the second straight day on Tuesday, with traders Less fear of COVID-19 Omicron variant..S & P 500 rose 2 at market closing.07% Ends the session with 4.687, Arrival Closer and closer Record high 4,744. NS Dow Jones Also Powered taller than, Leap 1.1.Four% (492 points) Up to 35,719, Russell 2000 managed to recover 2.28% To 2,253A move that allows the Small Cap Index and Mid Cap Index to trace back more than one-third of recent revisions.

Preliminary report from South African hospital releasede past Weekends suggest that Omicron causes only mild illness, and Wall Street is betting that new strains of the virus will not hinder global recovery or have a significant negative impact. Mobility and therefore activity.

According to comments from White House Chief Medical Advisor Anthony Fauci, Omicron is “almost certainly” less serious than Delta, and according to a study by the African Institute of Health, Pfizer’s vaccine is Some protection Against Variant in questionIt also strengthened bullish emotions and accelerated purchasing motivation in the FOMO spirit.

Despite the recovery of risk appetite this week, Traders should be vigilant, As a health authority Not enough yet Information to determine how great a threat a new coronavirus variant can be.in the meantime quick The details seem promising. The hypothesis can change as more data becomes available. whichever it is, know With more NS Scientists are their research And share their findings.

US STOCKS OUTLOOK

If Future research Confirm that the existing vaccine is still effective and that Omicron only leads to mild illnessWhile later immunizing against other more deadly COVID versions I have a contract, In the stock market Further rally for 2022, the best Possibility of upside down.

The reverse is also true.If Omicron can beat the vaccine Turned out to be More dangerous emotions than initially feared are likely to be hit, paving the way for large-scale sellouts.As you get closer Year-end It’s also important to keep in mind another point during the holidays. When a trader closes a book, trading volume may decrease. Occasionally, low liquidity creates explosive volatility, which can amplify downsides and upsides, similar to what has occurred in the market. The day after Thanksgiving..

Focusing on economic data, there are no market volatility events on Wednesday and Thursday in the US calendar. However, Friday should be interesting as the US Treasury releases its November inflation report.Price pressure is expected to accelerate significantly and headline CPI is seen at 6.8% y / y vs 6.2% y / y During October, And core gauge Seen from 4.6% y / y to 4.9% y / y..

If inflation results are positively surprised or details revealed that Sticky CPI components are also growing actively To their point Risk of pollution Forecasts and financial yields can skyrocket higher as traders begin pricing faster monetary policy normalization (faster QE taper and faster lift-off of borrowing costs). This scenario can weigh on the stock market, especially the highly valued technology and growth stocks. Under this assumption, Nasdaq A 100 or significantly technically distorted S & P 500 could be more vulnerable Pull back From the average of 30 Dow Jones Industrial Averages, for example.

S & P500 Technical Analysis

The S & P 500 appears to be ready to retest its all-time high of 4,744, with a strong rise after surpassing the 4,620 resistance area (now polar-based support) and increased risk motivation. increase. If this scenario is implemented in the next few days, traders will carefully monitor their reaction to index records as if prices have overcome this barrier and succeeded in printing higher highs on a daily closing basis. need to do it.Road to rising to channel resistance Close to 4,800 psychological areas. Conversely, when sellers resurface and the S & P 500 begins to recede, tech support will be 4,620, but moving below this floor could bring a 50-day simple moving average close to 4,545.

S & P500 Technical Chart

S & P 500 (SPX) Chart by TradingView

Educational tools for traders

  • Have you just started?Download for beginners Guide for Forex Traders
  • Want to know more about your trading personality?I take the DailyFX quiz Investigate
  • IG’s client positioning data provides valuable information about market sentiment. Get a free guide Learn how to use this powerful trading indicator.

— Contributor by Diego Colman



As traders reassess pandemic risk, the S & P 500 barks higher with Omicron's optimism.

Source link As traders reassess pandemic risk, the S & P 500 barks higher with Omicron's optimism.

Related Articles

Back to top button