S&P 500 Dwindles Ahead of 4000 Key Barrier Level Amid Growth in US Treasury Yields

S&P 500 Price Analysis – March 31

The S&P 500 index rose to weekly highs of 3,983.4 on Monday, but the upside bias has dwindled ahead of the 4000 key barriers in the current session. The US 10-year Treasury yield stays firm around the highest since January 2020. Dollar and US yields will continue to rise due to strong economic results.

Key Levels
Resistance Levels: 4100, 4050, 4000
Support Levels: 3950, 3900, 3840
S&P 500 Long term Trend: Ranging
As seen on the daily, the uptrend may be expected to falter and stay beneath the 4000 levels, while the market is trading above the daily MA 5 and 13, consolidating further into the following session, which will be followed by re-attempting the resistance level at 4000.

The technical indicators are currently endorsing the ranging outlook as the RSI is heading toward its midline reading at 50 while the price turned lower after retracement from the weekly high at 3,983.4 marks. The moving averages 5 and 13 maintain their position and may move slightly horizontally in the medium-term outlook.
S&P 500 Short term Trend: Ranging
In the short-term, the S&P 500 index has been at the upside channel after it penetrated above the consolidation area of 3,950 levels at the close of the prior week. As the price jumped above the 3,950 barriers, the expectation is a retest of the record peak at the 3,991 levels before retreating.

However, an increased consolidation at the top and dwindling 4 hours Relative Strength Index warn of further weakness which would bring bears fully in play on a firm break of 3,950 pivots. The anticipated scenario is positioned beneath 3,900 levels with targets at 3,840 and 3,800 levels extension.

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