S&P 500 Extends Pullback From a Historic High of 3706 Levels Amid Stimulus Talks

S&P 500 Price Analysis – December 8

S&P 500 index declined towards a level at 3676, down 0.30%, during the session. The index extends the prior day’s pullback from the historic high of 3706 levels. S&P 500 is modestly lower and seems to be struggling to pare its losses. The uncertainty over the US stimulus has earlier soured market sentiment, talks on the US-China rift weighed on the risk-tone.

Key Levels
Resistance Levels: 3900, 3800, 3700
Support Levels: 3650, 3522, 3450
S&P 500 Long term Trend: Bullish
As observed on the daily time frame, the middle level 3650 is required as support, then the next sublevels are 3638 zones, once the 3650 level becomes the tested support then the market may ascend once higher to 3700 levels, with a minor level of resistance at 3800.

Above in due course, we should see what may look to be a tougher test of a cluster of forecast zones around the 3765/85 band. Although in a larger context, we continue to eventually look for the measured objective at 3900 levels while below can see a pullback to 3650 regions, but with fresh buyers expected here. We maintain our tactical bullish bias whilst above the 3522 levels.
S&P 500 Short term Trend: Ranging
S&P 500 index pulled below the all-time high of 3706 levels and slightly under the short-term moving average 5 and 13 in the 4-hour chart. The relative strength index is holding beneath its midline while the price remains in the positive region. If the bears take control, immediate support could come from horizontal support at the 3650 levels.

On the flip side, an upside extension could take the index towards the all-time high of 3706 levels and then towards the 3800 resistance. All in all, the S&P 500 index maintains an upward move in the near term despite the ongoing correction.

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