S&P 500 Attempts To Sustain Rebound From Lows Into Positive Territory

S&P 500 Price Analysis – July 21

S&P 500 index hit an intraday high of 4,345, up 0.30 percent on the day at the time of this post in an attempt to sustain the previous day’s recovery advances in the early hours of Wednesday. Covid numbers from Australia and the United Kingdom represent a severe threat to the early wave’s economic recovery.

Key Levels
Resistance Levels: 4450, 4400, 4360
Support Levels: 4300, 4235, 4184
S&P 500 Long term Trend: Ranging
The S&P 500 has gapped higher on a surge in volume. The market has already risen past the prior day’s high and now at 4342, and the bias remains for this to hold for the time being, in an attempt to sustain the previous day’s recovery advances. The buying pressure could face resistance if the index fails to close the day above the 13-day moving average, which is now noted above the level at 4350.

Since March 2020, the index’s price has maintained within the ascending trendline support. On the downside, 4000 (psychological level) is a significant support level that correlates with the ascending trendline. A daily closing below that level in the next sessions could lead the index to prolong its drop toward the 3,800 levels.
S&P 500 Short term Trend: Ranging
Although the S&P 500 index appears to be poised to extend its upward trend on the 4-hour time frame, bullish exposure may be limited unless the price breaks through the 4,400 barriers. If the market falls below the 4-hour moving averages 13, as well as the 4266 levels, it may open at the 4,150 levels.

The RSI has been posting higher lows, indicating that the short-term bias is improving. However, unless the index breaks through the 4,400 barriers, any further upside correction may not be appealing. On the contrary, if the bears win this struggle, a more aggressive sell-off could follow.

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