S&P 500 Extend Sideways Trading As Traders Gather Fresh Clues

S&P 500 Price Analysis – June 2

S&P 500 looks for direction as the market remains around the 4,200 regions after two days of positive bias. Fears of high inflation in the United States are prompting the Federal Reserve to begin tapering weighed on market mood before now. However, recent prospects for more stimulus seemed to have piqued the bears’ interest.

Key Levels
Resistance Levels: 4350, 4300, 4250
Support Levels: 4150, 4000, 3900
S&P 500 Long term Trend: Ranging
The S&P 500 Index may retain an immediate upward bias above the 4200 levels, bolstered by a shift higher in the daily Relative Strength Index for a return to and above the 4245 high levels. With the daily moving average (MA 5) tilted to the top, traders are looking for the uptrend to regain momentum and a break above 4220 near-term barriers to clear the way for a move back to the record high of 4245, above which we expect resistance at 4300.

Since March 2020, the index’s price has maintained within the ascending trendline support. On the immediate downside, 4000 (psychological level) is a significant support level that correlates with the ascending trendline. A daily closing above that level in the next sessions could lead the index to prolong its anticipated price correction to the 3,546 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, the buying exposure may be limited unless the price breaks through the 4,250 barriers. If the market trades below the 4-hour moving averages 5 and 13, as well as the 4184 levels, it may open at the 4086 levels.

The RSI has been posting higher lows, indicating that the short-term bias is improving. However, unless the index breaks through the 4250 barriers, any further upside surge may not be appealing. However, if the bears win this struggle, a more aggressive sell-off could follow.

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