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S&P 500 Futures Price Analysis: Road to recovery intact while above 200-HMA

  • S&P 500 futures bounce-off 200-HMA support once again.
  • 50-HMA challenges the recovery path, as the bulls retain control.
  • A brief pullback cannot be ruled out ahead of Wall Street open.

S&P 500 futures, the risk barometer, have staged a solid comeback on Wednesday after a sharp sell-off witnessed late Tuesday.

Fresh hopes of US stimulus, after President Donald Trump backtracked somewhat on his decision to abandon the fiscal stimulus talks, lifted the overall market mood. Trump, in a couple of tweets this morning, asked the US lawmakers to agree on airline support and paycheck protection.

Over the last hour, the bulls seem to face exhaustion while the 50-hourly Simple Moving Average (HMA) at 3378 threatens the road to recovery from the critical 200-HMA level, currently at 3343.

The hourly Relative Strength Index (RSI) has turned south, at 52.77, still remains in the bullish territory, allowing for more recovery gains.

Meanwhile, the confluence of the 21 and 100-HMAs at 3366 caps the immediate downside.

Acceptance below the last would trigger a fresh drop back towards the 200-HMA.

S&P 500 Futures: Hourly chart

fxsoriginal

Author

Dhwani Mehta

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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