FxWirePro: S&P500 Daily Outlook

Ichimoku analysis (Daily chart)

Tenken-Sen- 4152

Kijun-Sen-4024

S&P500 has declined after hitting channel resistance 4185. The index halted its four weeks of bullishness on surge in coronavirus cases and the chance of higher taxes in the US. US president Joe Biden is planning to double the capital gain tax for a wealthy person. The US 10-year bond yield continues to trade lower for the past three weeks and hits a low of 1.53%.  The S&P500 hits a low of 4124 and futures are trading at 4149.

The number of people who have filed for unemployment benefits declined to 547000 compared to a forecast of 607K. Markets eye US flash manufacturing PMI  at 1:45 pm GMT.

Technically, the index is facing strong support at 4120. Any violation below confirms that minor weakness, a dip till 4080/4024/4000 is possible. On the higher side, the near-term significant resistance is around 4200 and any jump above will take the index to 4235/4260/4300.

It is good to sell on rallies around 4195-96 with SL around 4235 for TP of 4000.