S&P 500 – another record breaking day

The S&P 500 recorded another intraday all-time high yesterday before retreating and closing the day with 0,16% down. The huge stimulus package introduced by the Biden administration is pouring into the economy and lifting stock prices.

The S&P 500 is very close to the psychological 4000 level and there is no technical resistance to halt the advance. Further market moves will be influenced by the Federal Reserve´s interest rate decision later today. Hawkish statement (higher inflation, higher rates) could scare investors and send stocks down. Dovish statement (lower inflation, lower rates) could pave the way to new record highs. From the technical point of view, it is interesting to notice a negative divergence on the S&P 500 daily chart: while the index made a new high and trending up, the Relative Strength Index is trending down. That is indicating a possible downturn.