S&P 500 Retreats Beneath 3550 Level Amid COVID-19 Vaccine-Induced Optimism

S&P 500 Price Analysis – November 10

S&P 500 pullback from the all-time high continues lower as it retreats beneath the 3350 levels during early Tuesday. The COVID-19 vaccine-induced optimism, mainly propelled by headlines from Pfizer-BioNTech research boosted the financial markets but later weakened.

Key Levels
Resistance Levels: 3750, 3600, 3550
Support Levels: 3500, 3400, 3210
S&P 500 Long term Trend: Ranging
The S&P 500 pullbacks ideally hold support at 3500 marks around the moving average 5 to maintain thoughts of a bullish rebound and strength back to the 3675 levels. The next immediate support is seen at 3400 levels, below which can see a fall to 3233 levels.

After the prior day’s rally in the S&P 500 which coincided with a large move to the 3675 levels and later retreated to start a consolidation beneath the 3350 levels. The index upside records the best move in its prior 7 months in 2020. The upside break of the 3350 levels will confirm the resumption of the long term uptrend.
S&P Short term Trend: Ranging
A similar picture is seen in 4 hours S&P 500 as consolidation from 3588 levels could have completed with three waves to 3233 levels. Further upside breakout could be seen soon. The firm break of the 3588 levels will validate short term bullish bias. In the alternative scenario beneath here the further downside may gain traction towards 3440 & 3400 levels.

On the flip side, a rising bearish momentum and south heading Relative Strength Index warn of further weakness which would bring bears fully in play on a firm break of 3500 pivots. The anticipated scenario is positioned beyond 3500 levels with targets at 3550 and 3588 levels extension.

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