S&P 500 Index: The price is wrestling with the very important 3,158.24 technical level
- The S&P 500 index is trading 0.30% lower in a very choppy session on Wednesday.
- The VIX is only marginally lower on the session as traders grapple with the sentiment.
S&P 500 4-hour chart
The S&P 500 has had a very choppy session so far but remains 0.30% higher on the session. Looking across the major bourses only the Dow trades lower in the US but marginally. In Europe, the FTSE and DAX also struggled today.
Looking at the chart below, the main feature is the black resistance zone. The circles on the chart show that the zone has been used many times and could be important once again today. If the price closes above the area it could be a bullish sign and the market could reach the high on the chart of 3,231.50.
Looking at the indicators, the MACD signal lines are above the mid-point but the histogram is still in the red. A break higher in the histogram would be a good sign for the bulls. The Relative Strength Index has dipped away from the overbought zone, this gives the indicator some space to move higher if the bulls regain control of the market.
At the moment the S&P 500 is very much sideways but a break above 3,156.22 and 3,184.50 would be a very bullish sign.
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Additional levels
Author
Rajan Dhall, MSTA
FX Daily
Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.
