S&P 500 Registers a Temporary High Around 4200, Amid Virus Resurgence

S&P 500 Registers a Temporary High Around 4200, Amid Virus Resurgence

S&P 500 Price Analysis – April 21

The S&P 500 Index has nearly reached the 4200 levels, as buyers pushed the price to register a temporary peak at the start of the week. The risk barometer tracks the stock market’s declines in the United States as a result of the coronavirus (COVID-19) concerns, thus ignoring recent vaccine improvements.

Key Levels
Resistance Levels: 4300, 4250, 4200
Support Levels: 4086, 4000, 3900
S&P 500 Long term Trend: Bullish
The barrier at moving average (MA 5) limiting price advance may remain intact, despite today’s bounce towards the resistance around the 4150 levels. A step below this level is needed to confirm that a corrective process has begun.

If seen, support will be found at the late April 6 high of 4086 at first, and then, as the pattern indicates, a cluster of supports lower at 4000 levels. A move back to the 4200 regions would require a move above 4150 levels and the limiting MA 5 to ease the immediate downside bias, with tougher resistance seen at 4250 levels.
S&P 500 Short term Trend: Ranging
In the 4-hour chart, the S&P 500 index fell below the all-time peak of 4193 and slid marginally below the short-term moving averages of 13. Although the price remains in the positive zone around the MA 5, the relative strength index is staying below its midpoint of 50. If the bears gain power, horizontal support at the 4086 levels may provide immediate support.

On the other hand, an upside extension could push the index to its all-time high of 4193 and then to the 4250 resistance mark. Despite the current correction, the S&P 500 index is expected to continue to rise in the near term.

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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.