S&P 500 Mild Gains Stay Afloat 3800 Levels Following US Political Turmoil, COVID-19

S&P 500 Price Analysis – January 12

S&P 500 alternates around 3801-3816 levels, up 0.19% intraday during early Tuesday, and fails to extend the prior day’s pullback from a recent high of 3831.4 level. The uncertainty over US President Donald Trump’s reign joins the coronavirus (COVID-19) woes to weigh on risks.

Key levels
Resistance Levels: 4000, 3900, 3840
Support Levels: 3735, 3691, 3546
S&P 500 Long term Trend: Bullish
On the daily charts, S&P 500 has gone ahead moving positively into sideways trading and the index may attempt the next resistance level at 3840. Meanwhile, if the bulls cannot take back the reins at this juncture, then there is scope for a retracement towards the next support at the 3735 levels.

The longer-term bias stays cautiously higher with further resistance seen at 3900 initially, above which is required to clear the path for a further advance towards 4000 levels. In due course though we may see a tougher test of a cluster of projection levels in the 3850/85 band.
S&P 500 Short term Trend: Bullish
The S&P 500 index is in an upside ranging trend on the 4 hour time frame and this means that intra-day trades may be derived in line with the bigger time frame’s trend. Looking at the 4-hour time frame, the price has formed a ranging pattern and they usually break in the direction of the current trend.

As for the RSI, it is trading beyond its midlines, however, the horizontal resistance at 3840 could provide resistance for the currency 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 line at 3735 levels where buyers may re-emerge.

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