S&P500 rebounded by positive sentiment

Equity markets rebounded yesterday after long days of selloff. The S&P500 closed 2,4% higher, while the Nasdaq rose 3% on Monday. Sliding Treasury yields, Johnson Johnson´s new authorized Covid-19 vaccine and the US stimulus package prompted investors to buy riskier assets.

The US 10-year Treasury yield retraced from its 1.6% one year high below 1,43%, then Zoom Video Communications and the Nio´s earnings reports helped the positive sentiment on the markets. All Apple retail stores in US opened for first time in almost a year, pushing its stocks higher.

The combination of all these informations made the S&P500 bounce back from its 50 moving average on the daily chart. Should the bulls take advantage of the upside momentum, they could challenge the all-time high around 3.960 (B) and head towards the psychological 4.000 mark. On the downside, closing below the 50 EMA could make the index test the previous low around 3.656 (A). Below this point major support would be only around the October low area (3.240 – 3.200 C).