Technical Analysis

S&P500 (SPX) Price Analysis – March 30, 2023

By LonghornFX Technical Analysis
Mar 30, 20234 min

Daily Price Outlook

The S&P 500 (SPX) is trading at 4,027.81, up 1.42% in the last 24 hours. The Micron-fueled spike in technology and new indications of lessening concerns in the banking industry pushed the index higher.

Micron-led Rally in Tech

Micron Technology Inc (MU) reported results for the second quarter of fiscal 2023, which ended on March 2, 2023, on Tuesday. According to a statement released by the company on Tuesday, sales might reach $3.9 billion in the third quarter of this fiscal year.

This contrasts with the $3.75 billion average expert projection. Moreover, the corporation announced additional layoffs. Micron climbed as the projection surprise encouraged optimism that the worst was over.

After the chipmaker's better-than-anticipated sales outlook and encouraging remarks about a bottom in chip demand offset quarterly results that fell short of forecasts, the company's shares increased by over 7%, driving chip stocks and the broader tech sector higher.

Furthermore, interest in other semiconductor companies was raised, with Intel Corporation (INTC), Lam Research Corp (LRCX), and Marvell Technologies (MRVL) all gaining strength.

The risk sentiment helped financial and technology firms. As a result, the S&P 500 Index increased as optimistic outlooks from businesses like Micron Technology and others eased some concerns about the economic situation.

Banking Concerns Eased

The selling of assets by Silicon Valley Bank (SVB) on Monday helped stock investors' risk appetites and reduced market tensions. Furthermore, market concerns regarding pressure in the US banking sector have subsided due to significant actions taken by US authorities and the Fed to strengthen the financial system and restore trust.

Shares of SVB Financial Group (SIVBQ) are trading at 0.97, up 142.50% in the last 24 hours. Signature Bank (SBNY) shares increased 84.62% to 0.24. After investors gained hope from the banking sector's increased stability, the S&P 500 Index rose.

Fed to Hike Rates

As uncertainty persisted and bond investors assessed the effect of rising interest rates on economic development, the yield on US 10-Year Bonds rose modestly to 3.573%. The dollar also rebounded as bets that the Federal Reserve would keep raising interest rates increased once more. At 102.75, the dollar index (DXY) increased by 0.11%.

Looking ahead on Friday, experts predict the core PCE to rise by 0.4% m-o-m in February after increasing by 0.6% at the beginning of the year. The annual rate will remain at 4.7%, indicating that the underlying trend hasn't moved much.

A positive surprise may cause investors to increase their bets on a 25bp FOMC hike at the May meeting, even if this option has been discounted and may not cause much volatility. It might cause the S&P 500 to decline.

 S&P500 Price Chart - Source: Tradingview

S&P500 Intraday Technical Levels

Support      Resistance

3955             3983

3940             3995

3928             4011

Pivot Point:  3967

S&P500 – Technical Outlook

At present, the S&P 500 is trading at 4,025 with a solid support level at 3,920. However, there may be considerable resistance due to the double-top pattern at 4,039. If it surpasses this level, the SPX price might be propelled towards the next resistance level of 4,160.

Conversely, if the SPX falls below 3,920, it could encounter intense selling pressure and potentially decline to the 3,840 and 3,750 levels. Technical indicators like MACD and RSI are both within the buying zone, signifying a strong bullish inclination.

Investors will likely concentrate on the 3,900 level, and if the candle closes above it, the SPX price could experience an upward trend today.


    * EUR/USD Price Analysis – March 30, 2023

    * BTC/USD Price Analysis – March 30, 2023

    * S&500 (SPX) Price Analysis – March 27, 2023



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