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The S&P 500 rose by 0.31% on Wednesday following three days of consecutive losses. Technology shares helped boost the benchmark in what was a mixed day for US indices. The Nasdaq climbed by 0.67% but the Dow Jones Industrial Average found itself weighed down by industrial shares and blue chip stocks and ended up closing lower by -0.06%.
Leading gains in stocks were three of the major tech companies with Google, Facebook and Apple all making gains. In fact, the S&P 500 technology sector climbed 1% overall, its best daily performance in nearly a month. Apple managed to climb by 0.7% but was unable to recover Tuesday’s fall and is now down over 6% on the week.
Meanwhile, there was a hard landing for Disney shares. The perennial over-achiever dropped over 9%, its largest fall in six years. Losses came as the company reported strong earnings but warned of potential revenue risks related to the future of mainstream television.
Top performers on the S&P 500 on Wednesday included First Solar Inc. (up 16.67% and H&R Block Inc. (up 8.91%). Worst performance went to Genworth Financial Inc. (down 19.52%) and Quanta Services Inc. (down 15.44%). Overall, the index saw 54 new 52-week highs and 31 new lows.
Technicals & Outlook
The S&P 500 Index moved sharply higher in early trade and almost moved into exponential territory. But the market reversed most of those gains as US traders came to their desks.
Looking ahead, we are now bullish over the next few days as the Elliott wave is wave c (circle) up of the final zigzag. We are looking to buy in the 2063.5-2090 range for a move up to 2120.
Over the next few weeks we are also bullish. Trend and sentiment has turned up and we see potential for a move up to 2,150.
Thierry Laduguie is Trading Strategist at www.bettertrader.co.uk
