The S&P 500 index. Recovery after sales

Following the results of trading on February 1, the S&P 500 index rose by 1.64% by the end of the session, stopping at 3773.77.

The technical picture

On Monday, the S&P 500 index was recovering from Friday's drawdown. A 4% decline from the highs encouraged investors to actively buy and allowed the instrument to grow by more than 1.5% during the session.

You can learn more about financial topics with deltamarket. The technical picture gives reason to continue counting on the gradual growth of the index up to resistance at the level of historical highs of 3870 p.

Today, major companies Amazon (4.4% in the index), Alphabet (1.9%), Exxon Mobil (0.6%) and Pfizer (0.6%) report. The reaction of their shares to the report may affect the intraday dynamics of the index.

On the medium-term horizon, the outlook for the instrument remains moderately positive. The prospect of vaccination may support positive market sentiment and significantly mitigate possible negative news related to COVID-19.

As the highs are further updated, the uptrend is expected to continue, with the round level of 4000p being the target.

The growth leaders on February 1 were International Flavors & Fragrances Inc (+15.26%), Skyworks Solutions Inc (+9.12%) and Xerox Corp (+8.27%).

Macerich Company (-10.76), Dupont De Nemours Inc (-8.23%) and Lumen Technologies Inc (-3.15%) took the top three outsiders of the index on this day.

At the moment, the S&P 500 futures contract is trading 0.5% higher than the previous day.

The nearest support levels: 3700 / 3660 / 3640
Nearest resistance levels: 3870 / 3900 / 4000

Long-term picture

The confident V-shaped recovery of the instrument led the quotes to the February highs.

On the long-term horizon, the topic of coronavirus has given way to a positive effect from the soft monetary policy of the world's central banks, which will support US indices.

An additional positive driver was the news about the development of a coronavirus vaccine, which stimulated the demand for risk among global investors.

On the horizon of the first half of 2021, the recovery of the global economy, the victory over the coronavirus and the soft monetary policy of the Fed can support the growth of the market to 4000 p.