S&P 500 Stays Mildly Heavy After a Bearish Run Beneath 3318 Level

S&P 500 Price Analysis – September 22

The S&P 500 increases to 3301 levels up 0.33% on a day, during early Tuesday. In doing so, the equity derivative rises from the 5th day in a row plunge. The S&P 500 plummeted further in the previous day as fears of the coronavirus (COVID-19) resurgence roiled the global markets.

Key Levels
Resistance Levels: 3400, 3350, 3318
Support Levels: 3192, 3118, 3000
S&P 500 Long term Trend: Bullish
The S&P 500 has managed to depart from its daily lows. The S&P 500 is up 0.33% and down about 9% from its all-time high set at the beginning of this month. If the index fails to close the day above the moving average 5 and 13, which is currently seen above the level at 3318, the selling pressure could remain intact.

The MA 5 and MA 13 seem to have formed a strong resistance in the 3318-3350 area. On the downside, 3192 (psychological level) aligns with the ascending trendline as key support. A daily close below that level could force the index to extend its slide toward the 3118 levels.
S&P 500 Short term Trend: Bearish
On the 4-hour time frame, although the S&P 500 index is looking ready to recoup previous losses, buying exposure may not increase unless the price overcomes the 3318 barriers. In the event, the market pulls back below the 4-hour moving average 13, and the ascending trendline support, it may open towards the 3192 floors.

The RSI has posted higher lows, indicating an improving short-term bias. However, any additional upside correction may not be attractive enough unless the index jumps past the 3350 levels. However, if the bears win the battle at this point, a more aggressive sell-off may prevail.

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