S&P 500 Holds On to Recovery Earnings Past 2854.0 Level as US-China Trade War Lingers

S&P 500 Holds On to Recovery Earnings Past 2854.0 Level as US-China Trade War Lingers

S&P 500 Price Analysis – May 5

Yet again, the S&P 500 has managed to hold on to a closing rebound from its rising 13-day average, presently seen at 2880 levels. S&P 500 seems to be seeking its initial significant break following a 35 percent recovery from the lows. The World Health Organization (WHO) stays away from endorsing China’s US suspicions on coronavirus as this seems to carry the center.

Key Levels
Resistance Levels: 3139.0, 3000, 2900
Support levels: 2800, 2753, 2638

S&P 500 Long term Trend: Ranging

S&P 500 has already crossed the level of resistance at 2854. We foresee continued rally testing the next main area at level 2900 until we see a few reactions. The potential trend is the turnaround from level 2854 could form a long entry on anticipating the continuation of an upward trend to test level 2900. Otherwise, rejection from the level at 2900 could be an initial entry.

A closing beneath previously mentioned moving average of 13 at level 2839 is required to add support to this outlook with support seen also at level 2800, then level 2753.4 – the 23.6 percent retraction of the entire March/April rebound. However, beneath 2753.4 level stays at the later part of the day to indicate a more pivotal point.

S&P 500 Short term Trend: Bullish

In the near term, we foresee the potential for a rebound from the price gap seen on Friday, seen originating at 2800 level upwards and extending to 2900 level, to test resistance. Any such reversal may be a welcome break later in the week, and a required basis for higher prices.

Switching to the short-term indicators, advances are supported by the RSI and the moving averages on the 4-hour chart which is forming a slope. A sustainable, stable rebound may require market-wide activity and not just a bullish outlook. The chance of yet another bearish turn stays high.

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

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.