S&P 500 bulls are front side of bullish trendline towards resistance

Wall Street stocks rally on optimism in earnings and the debt ceiling outlook.
US500 index is tracking higher towards key resistance area.

Ross J Burland FXStreet

US stock indexes rose on Wednesday and the S&P 500 was up 43 points, or 1.07%%, at 4,153 at the time of writing. The index made a high of 4,164.67 on the day, rising from a low of 4,113.62.

The index was helped by Tesla and after Western Alliance amid optimism about a potential breakthrough in the deadlock in Washington over the nation's debt limit. The debt ceiling talks continue after top-ranking lawmakers met with President Joe Biden at the White House on Tuesday. House Representative Speaker Kevin McCarthy argued that a debt-ceiling agreement by Sunday is doable. Meanwhile, US Vice President Kamala Harris is to brief on preventing a default on Thursday.

Stocks in Tesla Inc extended gains to rise 3.9% after its annual shareholder meeting on Tuesday. ´´Top boss Elon Musk played down market rumors that he may step down as CEO of Tesla, touched upon two new mass-market models the company is developing, and reaffirmed that deliveries of its long-delayed Cybertruck pickup would start this year,´´ Reuters reported.

Reuters also reported that ´´US regional banks rose, led by a 14.0% rise in Western Alliance Bancorp
as the lender's deposit growth exceeded $2 billion and brokerage Bank of America Global Research resumed coverage of the bank with a "buy" rating.´´

US500 technical analysis

The index has rallied and is now facing a layer of resistance that could lead to a downside correction into the W-formation´s neckline and a test of dynamic support in the sessions ahead.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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