US Market Technicals Ahead (5 Apr – 9 Apr 2021)

Stock market gains could continue with with the $SPX index scaling the 4,000 level for the first time last Thursday. IMF’s spring meeting and minutes from the last FOMC meeting and the ECB’s latest meetings will be in the spotlight this coming week.

Investors will also be watching if Congress will pass President Joe Biden’s massive 2 Trillion infrastructure plan announced last week. Markets in China, Germany, the UK and Australia will be closed on Monday for holidays.

Here is what you need to know to start your week.

S&P500 (US Market)

The benchmark index ( $SPX ) surged to its all time high with a gain of +1.61% (+64.1 points) for the week, scaling the 4,000 level for the first time last Thursday.

Those gains could continue after the Labor Department reported Friday that the U.S. economy added 916,000 jobs in March, the most in seven months, while jobs growth in February was also larger than previously estimated. T

The immediate support to watch for $SPX is at 3,989 level, a previous resistance turned support level going forward.

IMF meeting

The IMF is to begin its spring meetings (virtually) on Monday where policymakers will give a snapshot of the economic fallout from the pandemic, but also release updated forecasts for growth for 2021 and 2022.

IMF Managing Director Kristalina Georgieva has already indicated that the updated World Economic Outlook will see an upward revision to January’s forecast for 5.5% global economic growth this year.

Central bank minutes

The Federal Reserve is to publish the minutes of its March meeting on Wednesday and investors will be on the lookout for any fresh insights on inflation amid concerns that unprecedented stimulus will lead to rising price pressures.

Fed Chairman Jerome Powell played down concerns about inflation after the bank’s March meeting, saying policymakers see inflationary pressures as transient.

The ECB is to release its latest meeting minutes on Thursday. Last week ECB President Christine Lagarde said investors could test the bank’s willingness to rein in rising borrowing costs “as much as they want”.

Powell, Fed speakers

Investors will be watching an appearance by Fed Chair Jerome Powell who is due to discuss the global economy on an IMF panel Thursday.

Meanwhile, U.S. Treasury Secretary Janet Yellen is to speak at a webinar hosted by the Chicago Council on Global Affairs on Monday to discuss the global economic recovery from the pandemic.