S&P 500 Rebounds As Tech Stocks Rally

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Stocks Rebound After Yesterday’s Sell-Off

S&P 500 rebounded towards the resistance at 3860 as tech stocks gained upside momentum. The tech-heavy NASDAQ Composite gained 2.6% in today’s trading session.

Yesterday’s pullback was likely driven by tax-loss selling. December 28 was the last day for tax-loss harvesting as trades take time to settle. Today, this factor is not in play, and speculative traders used the absence of tax-loss sellers to push stocks to higher levels.

The Initial Jobless Claims report, which met analyst estimates, may have provided additional support to stocks.

Today’s rebound is broad, and all market segments are moving higher. The rebound is led by tech stocks, which are gaining ground as Treasury yields pull back from recent highs.

Notable gainers include Tesla, which managed to move away from yearly lows. Tesla stock is up by more than 5% in today’s trading session. Ford and General Motors also managed to gain strong upside momentum.

Interestingly, energy stocks are also moving higher despite pullbacks in the oil and natural gas markets. The market mood is bullish, and traders look ready to buy stocks from all segments. It should be noted that many traders have left for a vacation so trading volume is low. Longer-term oriented traders should not pay too much attention to the market moves in the last days of the year.

S&P 500 Tests Resistance At 3860

S&P 500 is currently trying to settle above the resistance at 3860. In case this attempt is successful, S&P 500 will move towards the next resistance level, which is located at 3890. A move above this level will open the way to the test of the resistance at 3915. If S&P 500 gets above 3915, it will head towards the next resistance at 3935.

On the support side, the nearest support level for S&P 500 is located at 3840. If S&P 500 declines below this level, it will head towards the next support at 3815. A move below 3815 will push S&P 500 towards the support at 3800.

For a look at all of today’s economic events, check out our economic calendar.