SP500 sets new highs for April

The SP500 broke it's previous high for the month earlier today, extending the recovery from the big selloff in March. 2894.40 was the level to the upside which we highlighted last week. The market broke above it and is now trading back above 2900. Therefore on technicals we have a good indication of a potential continuation of the move to the upside. The next level to watch for potential upside is 3000.

SP500 cash daily chart

In terms of fundamental reasons - optimism based on plans for reopening of economies seems to be pushing equities higher. This move happens right before a very busy Wednesday in terms of market data. We have preliminary US GDP data release, together with a Fed interest rate decision and press conference. Furthermore we get to see the EIA oil inventories data, amidst times when falling oil prices have affected stock benchmarks. Whether these would turn out to be positive for stocks and fuel the continuation to the upside, or we will see a reversal, remains to be seen.