S&P 500 Index Reverses From Mid 4,300 Highs Amid Mixed Markets

S&P 500 Price Analysis – July 6

As risk appetite dwindles during the mid-week, the S&P 500 index appears fatigued after more than a week rally to register a fresh record high at 4,359 level. Nonetheless, the present sentiment indicates the price is hovering around the all-time high of 4,359, which was hit today.

Key Levels
Resistance Levels: 4450, 4400, 4360
Support Levels: 4300, 4250, 4150
S&P 500 Long term Trend: Bullish
Daily, the S&P 500 rally has finally extended past 4350, with additional levels of resistance stretching up to the 4359 high today. The most likely scenario is for a cap in the 4390/4400 range, followed by a potentially longer correction period.

The MA 5 appears to be propelling price from the 4200s to the 4350s. On the downside, 4250 (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 4150 levels in the coming sessions.
S&P 500 Short term trend: Ranging
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 and reversing downwards within the upside channel, 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 4300 levels are preferred, with targets at 4250 and 4150 in extension. Alternatively, the levels at 4390 and 4400 as goals for further gains.

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