S&P 500 Recovers From Recent Lows and Aims for Mid 3700 Level on the Latest Vaccine Optimism

S&P 500 Price Analysis – January 5

S&P 500 opened near 3706 levels, and it’s up at almost 0.50% intraday, during the European session on Tuesday. The index has recovered upside traction after the prior day’s low of 3663.4 level. The latest rally suggests the latest vaccine optimism may be among the market movers.

Key Levels
Resistance Levels: 3840, 3800, 3735
Support Levels: 3691, 3629, 3546
S&P 500 Long term Trend: Bullish
The S&P 500 is set to recover its recent high at 3784.2 level, which is a key high to watch out for from a technical perspective. A significant break above the 3735 horizontal resistance medium-term level could push it to open the door for a further advance past the recent significant high at 3784.2.

On the other hand, momentum indicators may soon indicate the continuation of the initial technical pullback from the overbought zones. The immediate support levels on the daily charts can be found at 3629, followed by 3595.6 and then 3550 thereafter.
S&P 500 Short term Trend: Bullish
The S&P 500 surged by 10 pips or 0.50% during the early Tuesday trading session. The index is trading within the moving average 5 at the upside channel pattern beyond the 3691.8 near term support levels. Technical indicators demonstrate that the index is likely to range during the following trading session. The potential target for bulls would be at the 3800 levels.

However, the horizontal resistance at 3735 could provide resistance for the index within this session and the next. On the other hand, if the S&P 500 returns lower, it is supported on dips by the horizontal support at the 3629.2 levels where buyers may re-emerge.

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