The S&P 500 stops at a key support zone but there could still be tough times ahead
|- The S&P 500 is trading 0.71% higher on Thursday after a bad start to the week.
- The price has tested the 23.6% Fib which matches a support area.
S&P performance
It has been a real mix bag at the top of the index on Thursday as Goldman Sachs make the top ten after the recent underperformance in the banking sector. Freeport McMoran also make the grade despite copper losing some serious ground in the last couple of sessions. Albemarle Corp is also 5% higher and that is despite falling 15% this week.
On the downside, twitter, CarMax and Accenture make up the bottom three but Under Armour are also struggling as Nike increase their market share.
S&P 500 daily chart
The chart below shows the extent of the bounce at the level where the 23.6% Fibonacci extension and 3233.25 support meet. It is hard to say if the level will hold over the coming sessions but it seems like the bulls have found their voice for now.
The MACD indicator is bearish with the histogram in the red and the signal lines under zero. The Relative Strength Index however is showing a bullish pattern called a failure swing. This is when the price continues to make higher lows but the indicator makes a lower low and reaches oversold levels. Technical traders could continue to monitor these developments over the coming sessions to see if the signal matures.
A great start would be a break of 3315.00. This medium-term resistance point could be key and if the bulls manage a break it could indicate the bull trend might be set to continue.
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Additional levels
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