S&P 500 Tests Resistance At 3885 As Apple Rallies

Tech Stocks Rise as Apple and Intel Reports Lift Sentiment

After the announcement of the company's quarterly report, Apple shares saw significant support, causing the S&P 500 to rise sharply and move towards the 3885 mark.

Apple surpassed analyst expectations for both profits and sales, reporting revenue of $90.1 billion and earnings of $1.29 per share. Even though Apple's financial numbers weren't great, the price nevertheless rose 8%, suggesting that traders were waiting for an opportunity to purchase the shares.

Results from Apple more than made up for the decline in Amazon shares, which fell by 8%. It should be mentioned that during yesterday's post-market session, Amazon stock fell as much as 19%, therefore Apple's results significantly boosted optimism in the IT sector.

After the publication of the quarterly report, Intel stock also increased. In the instance of Intel, traders praised job-cut plans.

Energy companies including Schlumberger, Pioneer Natural Resources, and Hess sank as oil markets fell over concerns about coronavirus lockdowns in China, while IT stocks saw widespread support. As copper fell below the $3.45 mark, the top copper producer Freeport-McMoran saw its share price fall by 2%.

It's interesting to note that today's S&P 500 was unaffected by the stronger currency and higher Treasury rates. Apple's strong earnings announcement increased traders' willingness to take risks, and investors raced to purchase stocks across a range of sectors.

Tests Multi-Week Highs for S&P 500

The S&P 500 is now attempting to settle above the 3885 resistance level. The RSI is still in the moderate range, and there is still possibility for future trading sessions to see further upward momentum.

The S&P 500 will go toward the next barrier at 3915 if it settles above the 3885 level. The barrier at 3960 might be tested if a price moves over 3915. The S&P 500 will go toward the next obstacle at 4000 if it rises over 3960.

The prior resistance level at 3835 will act as the S&P 500's first support level on the support side. The S&P 500 will move in the direction of the next support at 3805 if it is able to settle below this level. S&P 500 will be pushed toward the support at the 20 EMA at 3760 if a move below the support at 3805 is made.