S&P 500 fell after Coronavirus hit the biggest economic country in the world, the United States of America. The Index recovered almost 38% of total drawdown so far, but can S&P 500 Bulls Sustain Above $2500? What are the charts and technical indicators saying? Gain further insights into today’s S&P 500 Technical Analysis.
March 27, 2020 | AtoZ Markets – S&P 500 recovered higher and the market had a daily close at $2630. The Bulls pushed the price higher quite impulsively, after it bounced from $2350 support level. As the U.S. economy is currently struggling with the COVID-19 epidemic, the economy somehow managed to have a positive outcome in the process. What can be the outcome today? Will Bulls sustain or Bears Take Over?
Can S&P 500 Bulls Sustain Further?
S&P 500 is currently residing near $2630 area after the market closed yesterday. The price recovered higher after suffering one of the biggest declines in the recent years. As per the current scenario, S&P 500 needs to break above $2700 resistance area to sustain further Bullish momentum.
Image: S&P 500 4 Hour Chart
According to the 4-hour chart, S&P 500 is currently residing at $2630 area, after an extended period of Bullish pressure. The price fell sharply towards $2200 area after breaking the December 2018’s low of $2350. Moreover, the price managed to recover higher with a decent gain. So, if the price maintains above $2600 area with a daily close, the Bulls may regain momentum and push the price higher towards $2800, which is the next intraday resistance level.
Furthermore, the dynamic level of 20 EMA is residing below the current price, which may now become support and may push the price upward. Besides, the MACD lines were residing below 0.00 level and had a Bullish cross over recently. The histogram volumes are also Bullish, which indicates further Bullish pressure is in the making.
Read More – Can Bitcoin Price Sustain Above $6500 This Time?
Is It the End of S&P 500 Bearish Trend?
According to the Daily chart, S&P 500 is currently residing near $2630 area after U.S. session close yesterday. The recent Bearish pressure was quite impulsive, which broke below $2350 area, but failed to sustain further and reversed. After that, the Bulls took over the market and recovered higher closing above $2600 area quite aggressively.
Image: S&P 500 Daily Chart
As per the current price action, if S&P 500 can have an impulsive Bullish close above $2600 area, the Bullish pressure may sustain further towards daily resistance level at $3000. Alternatively, if the price breaks below $2600 area with a daily close, the price may decline further and push the price lower towards $2350 in the days ahead.
Furthermore, the MACD lines are residing below the 0.00 level with a successful Bullish cross over. The RSI indicator line is gradually moving upward after breaking the Bullish Pennant pattern. Though the dynamic level of 20 EMA is residing above the current price, the Bulls needs to break above the dynamic level to continue the Bullish momentum. Alternatively, if the price rejects from the dynamic level, the Bearish trend may continue further.
To conclude, as the U.S. economy is currently sinking because of COVID-19 outbreak, the S&P 500 is surprisingly recovering higher. An impulsive daily close is required above or below $2600 key level to establish a definite momentum.