S&P 500 Displays Upside Momentum, Holding on to Near Term Gains

S&P 500 Price Analysis – March 3

During the corresponding trading session, the S&P 500 was very volatile, while the current recovery continues past 3000/3100 levels. As investors track the situation with coronavirus and that, of course, continues to move around the markets. During the trading session on Monday, however, stock markets tried to recover, showing signs of resilience after initially gapping lower.

Key Levels
Resistance levels: 3400, 3220, 3100
Support level: 3000, 2854, 2772

S&P 500 Long term Trend: Ranging

The initial market reaction to the pandemic, in the long-term context, sees the S&P 500 erasing early gains and slumping into negative territory to reflect the disappointment.

On the other hand, the Index remains relatively resilient in a recovery mood near the 3100 handles, while it is difficult to trade in an atmosphere that features so much in the way of uncertainty, If the price remains above the 3100 levels, then the market may continue to rise.

S&P 500 Short term Trend: Bearish

After an attempt to close the price gap above 3100, the Index currently trades at 3063.00, we could see an effort to hold above 3100.00; but, if it fails, the next two supports are priced in at 3000.00 and 2854.00.

If the market was to turn around and fail below Friday’s lows, not only will the 2854 level be tested but more than likely broken to the downside while the market collapses.

Instrument: S&P 500
Order: Buy
Entry price: 3069
Stop: 3000
Target: 3182

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