S&P 500 Snaps Six-Day Losing Streak, Bounces off Lows at 3856 Levels Amid Risk-Recovery

S&P 500 Snaps Six-Day Losing Streak, Bounces off Lows at 3856 Levels Amid Risk-Recovery

S&P 500 Price Analysis – February 24

The S&P 500 picked up bids near the 3,856 level, up 0.20% during the European session on Wednesday. In doing so, the risk barometer rises for the first time in seven days. The market mood is mixed after a turbulent Tuesday – the Fed Chair Powell saved the markets by promising support, weighing on yields and the dollar.

Key Levels
Resistance Levels: 4000, 3950, 3900
Support Levels: 3840, 3800, 3735
S&P 500 Long term Trend: Ranging
Looking at the chart, the price has bounced off the low-level support at 3809 during the prior day, and now all eyes will be on the moving average 13 resistance zone at 3920. If the price can break the 3900 marks into the American open, it will give the bulls some hope.

On the downside, if the aforementioned support level is broken, it may resume the sell-off which might continue leading into the next session. The Relative Strength Index indicator has moved beyond its midlines into the bull territory. This does not necessarily mean the price will bounce further but the market might take a small breather before continuing lower.
S&P 500 Short term Trend: Ranging
Technically, the short-term bias may shift back to bullish again as the price tries to consolidate beyond the moving average 5 and 13, while the RSI is also struggling to gain traction beyond its mid-levels.

The S&P 500 is cutting its most recent decline in the four-hour chart after it touched down again in the horizontal support zone at 3809. Beneath 3800 levels, a critical contention appears beyond the base, followed by support at 3735. A price decline may reduce risks within the range and may suggest further consolidation.

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.