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.
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.
