S&P 500 Records Correction From Recent Lows of 3419 Level As Uncertainty Rages On

S&P 500 Price Analysis – October 20

The S&P 500 is fixing a correction from the 5th consecutive daily low level of 3419 while raising rates around 3440, up 20 points, or 0.60% during the day during the Tuesday trading session. Uncertainty about fiscal stimulus, US elections, and the pandemic could mean the adjustment is not over yet.

Key Levels
Resistance Levels: 3830, 3650, 3588
Support Levels: 3400, 3350, 3210
S&P 500 Long term Trend: Ranging
The S&P 500 declined in the prior day, however, its price today moved to 3460 levels, above which it should now be confirmed that the pullback is over for momentum back to 3522 levels, then 3550 levels, above which would trigger a move back to 3588 high levels.

However, a breach beneath the long-term moving averages will invalidate the bullish perspective. In this scenario, we anticipate price action to rebound and test the ascending trend line from the March lows. However, if the price retreats beneath the trendline, it may look for support around 3350 levels.
S&P 500 Short term Trend: Ranging
Technically, the short-term bias may shift back to bullish again as price tries to consolidate beyond its moving average 5, while the RSI is also struggling to gain traction beyond its neutral 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 3450. Beneath 3450 levels, a critical contention appears beyond the base, followed by support at 3400. A price decline may reduce risks within the range and may suggest further consolidation.

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