S&P 500 Posts Losses to 3901 on Lower Correction Despite Upbeat US Data

S&P 500 Price Analysis – February 17

The S&P 500 started the day sharply lower while pointing losses at the open and struggling to stay beyond the 3900 levels. As of writing, the S&P 500 was down 0.8% on the day at 3,901. Despite upbeat data published by the US Census Bureau on January retail sales increasing by 5.3% to $568.2 billion the major equity indexes in the US opened in the red.

Key Levels
Resistance Levels: 4100, 4000, 3950
Support Levels: 3900, 3868, 3800
S&P 500 Long term Trend: Ranging
The S&P 500 is struggling to hold its move above the 3900 support zone as sellers finally look to start taking advantage of the medium-term correction. Meanwhile, the bearish pressure may be expected to falter and stay around mid 3800 levels, while the market is trading above the support level at 3840 while consolidating further into the following session.

The technical indicators are currently endorsing the ranging outlook as the RSI is heading towards its midlines, while the price turned lower after retracement from the 3950 marks in the prior session. The moving average 13 maintains its position and may move slightly horizontally in the medium-term outlook.
S&P 500 Short term Trend: Ranging
In the short-term, the S&P 500 index has been on a retreat after it penetrated above the consolidation area of 3950 levels earlier in the week. As the price plunged beneath the 4 hour MA 5 and 13, the expectation is a retest of the closest support at the 3900 levels before retreating further.

The S&P 500 support zone at 3868 needs to hold to keep the immediate risk lower for a move back to 3950, above which we see resistance next at the top of the moving averages at 4000, with this expected to cap the advance initially.

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