S&P 500 Holds Steady Despite Conflicting Indications

S&P 500 Price Analysis – September 1

The S&P 500 reached 4545 the highest since the start of the year. For August, the Manufacturing PMI in the United States and the United Kingdom was improved to 60.3 points. With 374K jobs lost in August, the US ADP jobs data fell short. The employment component of the ISM Manufacturing PMI fell.

Key Levels
Resistance Levels: 4650, 4600, 4550
Support Levels: 4500, 4400, 4360
S&P 500 Long term Trend: Bullish
Daily, the index rally has finally extended past the 4500 regions, with additional levels of resistance stretching up to the 4600 high. The S&P 500 was up 0.09 percent on the day at 4,542 as of this writing. The most likely scenario is for a cap in the 4500-4600 range, followed by a potentially longer correction period.

The MA 5 appears to be propelling price from the 4500s towards the 4600s. On the downside, 4400 (psychological level) is a major support level that correlates with the MA 200. If the index closes below that level daily, it may be forced to attempt a decline toward the 4000 levels in the coming sessions.
S&P 500 Short term Trend: Bullish
On the 4-hour time frame, the S&P 500 index is in a positive trend, which means intra-day trades can be derived based on the larger time frame’s trend. The price has established a bullish pattern on the 4-hour time frame, which frequently breaks in the direction of the present trend.

The RSI is now overbought, but if it breaks below that level, it could be the first sign that the bears are set to start their party, implying more weakness ahead. Short positions below 4500 levels are preferred, with targets at 4465 and 4400 in extension. Alternatively, we see 4550 and 4600 as goals for further gains.

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