S&P 500 Recoups Prior Day Losses Amid Record Highs Boosted by Investor Optimism

S&P 500 Price Analysis – May 5

The S&P 500 index is recuperating under a new high set at 4220.2 after the recent rally on Monday fueled by positive US results. The index recoups from a pullback to 4129.6 low early in the European session. Investor optimism in the economy reopening and recovery is speeding up and has improved significantly.

Key Levels
Resistance Levels: 4350, 4300, 4250
Support Levels: 4129, 4086, 4000

S&P 500 Long term Trend: Ranging
The S&P 500 is poised to reclaim its recent high of 4220.2, which is a crucial technical high to keep an eye on. A substantial break above the medium-term horizontal resistance level of 4200 could pave the way for a move past the recent significant high of 4220.2.

Momentum indicators, on the other hand, may soon signal the continuation of the initial technical pullback from overbought zones. On the daily charts, immediate support can be found at 4129, followed by 4086.8, and finally 4000.
S&P 500 Short term Trend: Ranging
During the prior day trading session, the S&P 500 recouped its losses from the 4129 level. Beyond the 4086 near-term support levels, the index is trading above the moving average of 5 at the upside channel pattern. The index is expected to range over the next trading session, according to technical indicators.

The 4220 levels may be a possible goal for bulls. Nevertheless, the index can meet opposition from the horizontal resistance at 4200 in this session and the next. If the S&P 500 falls, it will be supported on dips by the horizontal support at 4129 levels, where buyers can re-emerge.

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