S&P 500 Grapples at the Top To Contain Bears Above 3900 Levels Amid a Drop in US Treasury Yield

S&P 500 Price Analysis – March 24

The S&P 500 trades past the 3,900 level and presently up at 0.18% during the early European session on Wednesday. US 10-year Treasury yield declines to new low printing three basis points (bps) of intraday loss to 1.60% during the session.

Key Levels
Resistance Levels: 4,100, 4,000, 3950
Support Levels: 3,900, 3,840, 3,800
S&P 500 Long term Trend: Ranging
As seen on the daily chart of the S&P 500, the latest rally seems to ease from the prior week high of 3,991 level and has retreated towards the 3,900 level in search of stronger support. A recovery above the 3950 horizontal resistance medium-term level could push back to the yearly high at 3,991.

On the other hand, the price action and the RSI shows a sign of exhaustion. The moving average 5 cross lower may soon indicate the continuation of the initial technical pullback from the overbought zones. The immediate support levels on the daily charts can be found at 3,868, followed by 3,800 and then 3,735 levels.
S&P 500 Short term Trend: Ranging
In the short-term, the S&P 500 index has been ranging at the upside channel between 3,950 and 3,900 level after it penetrated above the consolidation zone. In a broader consolidation phase, the index near-term support moves to 3,900, then 3,868 level below which can see a retest of the recent low and 38.2% retracement around 3,735 level.

However, an increasing ranging momentum and a recovering 4 hours Relative Strength Index warn of further consolidation which would bring bears fully in play on a firm break of 3,900 pivots. The anticipated scenario is positioned beneath 3,900 levels with targets at 3735 and 3691 levels in extension.

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