S&P 500 Continues To Make a Corrective Pullback Towards the 4550 Level

S&P 500 Price Analysis – December 1

The S&P 500 index has dropped below 4,600 one more time from an intraday high of 4,653 reached in the day. On the first trading day of the month, the index fell 0.32 percent, putting the S&P 500 on track for a corrective pullback under the 4,550 level. It should be highlighted, however, that dealers remain wary despite mixed concerns about the COVID-19 South African strain, called Omicron.

Key Levels
Resistance Levels: 4,800, 4,720, 4,650
Support Levels: 4,500, 4,400, 4,300
S&P 500 Long term Trend: Ranging
While looking for support, the S&P 500 extended its losses from the previous session below the 4,600 levels. The bears will have to deal with the major support level of 4551 on the downside. Before the collapse extends to 4,272 levels in October lows, an intermediate corrective bounce from the 4,550 levels cannot be ruled out.

A breach above the 4,650 levels might start and speed up the recovery. If flipped, the 4,720 level will be good resistance-turned support that can limit the downside. In the long to medium term, a subsequent break below the 4,550 levels will trigger a much deeper collapse below 4,400 and even 4,300 levels.
S&P 500 Short term Trend: Ranging
In a shorter time frame, the index remains under pressure from the 4 hours moving average of 5, with the 4,500 levels in mind. Traders that are positive on the S&P 500 should buy any technical pullbacks towards the 4,500 level.

The commencement of a new bearish short-term trend will be confirmed if multiple prices close below the technically significant 4,551 levels. The 4,650 and 4,720 levels are considered near-term resistance. To re-establish a positive tone, the price must rise over 4,650, with resistance around 4,720.

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