S&P 500 Gains on Positive Earnings Outlook

The S&P 500 index opened with a 0.8% gain on Monday, with investors focusing on upcoming third-quarter earnings reports from major companies, even as US Treasury yields have risen. Last week, the index recorded a 0.45% gain despite a significant sell-off on Thursday and Friday, partly caused by concerns about Israel-Gaza hostilities, leading to lower market closes. However, strong earnings from major banks like JPMorgan, Citigroup, and Wells Fargo supported the Dow Jones index. This week, the S&P 500 is expected to rebound as several major companies, including Johnson & Johnson, Bank of America, and Goldman Sachs, report earnings. Additionally, key events include US Retail Sales for September and a significant speech by Federal Reserve Chair Jerome Powell on Thursday. Dow Jones futures are leading the way, and all three major indices are in positive territory ahead of the opening bell.

Based on technical analysis, the S&P500 slightly higher on Monday, pushing towards the middle band of the Bollinger Bands. Currently, the S&P500 is trading above the middle band, suggesting the potential for a higher move to the upper band of the Bollinger Bands. The Relative Strength Index (RSI) stands at 55, indicating that the S&P500 is back to neutral bias.

Resistance: 4399, 4439
Support: 4353, 4317