S&P 500 Records an Early Uptick but Index Stays Heavily Negative Despite Fiscal Stimulus

S&P 500 Records an Early Uptick but Index Stays Heavily Negative Despite Fiscal Stimulus

S&P 500 Price Analysis – March 17

The futures on the S&P 500, the stock index for Wall Street and the global equity benchmark, spiked up 3.87 percent early today, dropping 12 percent on Monday. However, it remains negative by another 11 percent trading as low as 2,365 level on Tuesday as the plans for US fiscal stimulus seem to spread fear rather than reassure investors.

Key Levels
Resistance Levels: 3400, 3000, 2600
Support Levels: 2332, 2250, 2000

S&P 500 Long term Trend: Bearish

Technical signals are not promising on the daily chart. Although the RSI and the moving averages appear to have found a bottom and overstretched in the oversold region, there is still a compelling rebound to the candle pattern to prove.

Should the price increase, the bulls would drive above the nearby 2,700 level of resistance and hold up to 2,854 level. The S&P 500, put in a nutshell, remains vulnerable to downside moves once the 2,332-level 2018 low fails to hold. A fall under that level will also invalidate the upward trajectory of the market in the long-term timeframe.

S&P 500 Short term Trend: Bearish

On the flip side of the 4-hour time frame, a drop below the 2.332-level 2018 trough may suggest another downside extension likely to 2,250-level where support was sought by the market between 2016 and 2017 year.

Piercing the barrier, the emphasis would then move to level 2190, while a fall beneath the level 2,100 could open the door to level 2000.

Instrument: S&P 500
Order: Sell
Entry price: 2500
Stop: 2600
Target: 2394

Note: Learn2Trade.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

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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.