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S&P 500 Bulls Sustained Above $2350 as Coronavirus Fears Continue

S&P 500 Bulls Sustained Above $2350 as Coronavirus Fears Continue

S&P 500 Bulls sustained above $2350 and may recover higher. The price dropped quite impulsively in just three weeks and now residing near Dec 2018’s low. Let’s check the S&P 500 Technical Analysis for more levels and insights.

March 19, 2020 | AtoZ MarketsS&P 500 is now trading at $2400 area after the price bounced from $2350 key support level. The recent Bearish trend was very impulsive and non-volatile, which bring the price at the late 2018’s low. Despite the Bearish trend in place, the Bulls may now regain momentum and recover higher in the process.

S&P 500 Bulls Sustained above May Strike Back Again

U.S. Senate recently passed an emergency bill for the Coronavirus situation in the US. As a result, the U.S. Stock Market gained certain relief and Bulls regained momentum. The passed bill will help to expand unemployment benefits and the paid leave all over the United States on this Coronavirus lockdown situation. The bill passed by 98-0 vote, in the house of chamber. This bill may expand further if needed in the coming days.

The S&P 500’s all sector declined on Wednesday because of Coronavirus hit the world’s economy, which is currently trying to recover. The energy shares declined by almost 12.6%, where the energy price decline near 29%. The WTI crude oil price and the natural gas price is currently at an all-time low. On the other hand, U.S. Yields rose, and the Dollar index rose above 101.

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Moreover, the rise in the U.S. Dollar index indicates that the investors are interested in keeping their assets in cash. The VIX volatility index moved higher while the S&P 500 dropped by 5%. The S&P 500 lost around 5.18% on the last trading session, where the Coty Inc drop almost 32% and the US Airlines Holding Inc lost more than 30% in a day. Unlike the Akamai Technologies Inc rose by 9.80% while the Huntington Ingalls Industries Inc increased by 6.99%.

Read More – Bitcoin Stable above $5000 – Can Bulls Sustain the Momentum?

Bears May Lose Momentum

According to the Daily chart, the S&P 500 is currently residing near the $2400 area at the end of yesterday’s trading session. The Bearish trend was quite impulsive and non-volatile but Bulls still managed to reject some Bearish pressures along the way.

There were several gaps which took place while the S&P 500 price dropped from the top. As per the current scenario, if the S&P 500 Bulls sustained above $2350 area with a weekly close, the Bulls may recover higher and push towards $2500 or higher in the coming days. It should be noted, the overall bias is still Bearish and may remain dominated by the Sellers. So, a strong Bullish counter is required to retrace higher.

S&P 500 Sustain above $2350 - Will S&P 500 Recover Higher?

Image: S&P 500 Daily Chart

On the other hand, the dynamic level of 20 EMA is residing far above from the current price, which may pull the price higher as Mean Reversion. Moreover, the RSI indicator is currently residing near oversold level 30, which also formed certain Bullish Divergence along the way, indicating a certain move higher is in the making.

To conclude, the S&P 500 may see a certain retrace higher despite the Coronavirus impact. As the price remains above $2350 area, Bulls may intervene to push the price higher to a certain extent. 

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.

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