S&P 500 Eases Down to 2525 Level After a Four-Day Advance as Investors Weigh Stimulus Package Impact

S&P 500 Price Analysis – March 29

The US benchmark S&P 500 index is down to 2525 level as investors start to factor in the impact of the $2.2 trillion stimulus package for the stabilization of the economy, making it the largest tax reform package ever accepted by the US. Congress.

Key Levels
Resistance Levels: 3139.0 , 2900, 2700
Support levels: 2500, 2400, 2179.3

S&P 500 Long term Trend: Bearish

The S&P 500 consolidates the progress made over the last four days beneath resistance levels of 2600/2700. In the near term, the correction can be shifted back to the 2500 and 2400 levels. Initial resistance is shown in the price levels of 2600/2700.

Sustained break of Moving average 5 and 13 below (now at 2496.77 level) may suggest progress of recovery and may lead in a retest of 2179.3 lower level.

S&P 500 Short term Trend: Bearish

The S&P 500 4-hour time frame scenario is close to that of the daily one, as the rebound from 2179.3 level has lost traction only before the 38.2 percent pullback from 3139.0 to 2179.3 at 2638.7 levels.

As a result, in the short term, the S&P 500 index may establish a new restricted bearish trend, that may offer the potential for new consolidations on the long side, a firm break of 2638.7 horizontal near-term resistance level may now lead to a stronger upside rebound at 2900 level.

Note: Learn2Trade.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results