S&P 500 Near Term Recovery Halts, as Downside Pressure Continues

S&P 500 Price Analysis – March 8

During the prior week, the S&P 500 rallied a little, rising past the 200 MA before plunging again. This is a market that is concerned about a lot of recessionary headwinds and as a result, we are likely to continue seeing the stock market in the red.

Key Levels
Resistance levels: 3400, 3220, 3100
Support level: 2854, 2772, 2600

S&P 500 Long term Trend: Bearish

In the previous trading session, the S&P 500 plummeted through the 3000 levels, as we continue to see a lot of uncertainty come up over global growth and recessionary concerns. If the market continues to make a fresh low, that would be exceptionally bearish, causing the market to plunge further and retry the support level of 2854.

The downtrend is expected to continue as the pair trades below the resistance level of 3000 deployed, while the uptrend can start as soon as the pair rises above resistance level 3069, followed by a trend towards the nearest resistance level at 3100.

S&P 500 short term Trend: Bearish

In the short term, the market is very likely to cause a lot of volatility in both directions, but it will level out sooner or later over the longer term.

The 200 MA has also been acting as a bit of the ceiling at this stage, limiting the advance upward around the level of 3250. The price lies at the point of 2964.4 level and it certainly indicates that the markets are quite eager to converge and try to find some kind of equilibrium.

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