S&P 500, silver hit record highs as USD/JPY slips further
Technical analysis of the S&P 500 as it hits a closing record high while the silver price rises to its fourth straight all-time high in as many days while USD/JPY slips further.
Macro update
US equities set record highs:
The S&P 500 closed at a fresh record as stronger-than-expected third quarter (Q3) US growth buoyed growth stocks, rising 0.46%, while the Nasdaq 100 added 0.57% and the Dow Jones gained 0.16%.
Treasury yields firm:
Robust 4.3% gross domestic product (GDP) growth pushed bond yields modestly higher and reduced expectations of a January Federal Reserve (Fed) rate cut, even as markets continue to price easing later in 2026.
Growth stocks lead:
Growth outperformed value, driven by gains in Nvidia, Amazon, Alphabet and Broadcom, while cyclical sectors lagged under pressure from higher yields.
Corporate stock moves:
ServiceNow fell after agreeing to acquire cybersecurity firm Armis for $7.75bn, while mining shares advanced as copper prices moved to record highs.
Asian markets track Wall Street:
Asian equities rose in thin year-end trading, with Japan’s Nikkei 225 up 0.4% and regional markets heading for their strongest annual performance since 2017.
Precious metals rally continues:
Gold climbed above $4,500.00 an ounce and silver hit new records, capping a strong year as investors favoured precious metals amid rate-cut expectations and geopolitical risks.
S&P 500 is gunning for October record high
The S&P 500's Santa Claus rally is truly underway with the October record peak at 6,920 being within reach. Once bettered, the psychological 7,000 mark will likely be eyed.
Immediate support may be found around the 11 December 6,903 high and further down around the 6,870 mid-November peak.
Short-term outlook:
Bullish while above the 19 December 6,793 low
Medium-term outlook:
Bullish while above the 6,721 mid-December low
S&P 500 daily candlestick chart
USD/JPY under short-term pressure
USD/JPY's retracement from last week's ¥157.76 high is taking the cross towards its October-to-December support line at ¥157.76 around which it may find interim support.
If not, the current December lows between ¥154.66-to-¥154.35 may be reached.
Resistance may be spotted around the 9 December high at ¥156.95.
Short-term outlook:
Bearish while below the November and 19 December highs at ¥157.76-to-¥157.89
Medium-term outlook:
Bullish while above the 5 December low at ¥154.35
USD/JPY daily candlestick chart
Silver hits yet another record high
The silver price is on track for its fourth straight daily record high with the 161.8% Fibonacci extension target at $78.5557 being in focus.
It is measured by taking the distance from the October 2008 low to the April 2011 high, multiplied by 1.618, and then projected higher from the March 2020 low.
If the $78.5557 target were to be exceeded, the psychological $80.0000 mark may be reached next.
Short-term outlook:
Bullish while above the 19 December low at $64.4969
Medium-term outlook:
Bullish while above the 4 December low at $56.4590
Silver daily candlestick chart
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