S&P 500 Price Analysis: Bouncing up from important support at 3,000


  • The S&P 500 Index bounces at 3,000 support level and rises 1% on the day.
  • US equities advance as upbeat macroeconomic data fuels appetite for risk.

The S&P 500 Index has opened the week on a positive tone and advances more than 1% on Monday as market optimism triggered by upbeat macroeconomic figures has offset concerns about the increase of coronavirus cases worldwide.

Better than expected industrial profit data in China and the bright pending home sales and Dallas Fed manufacturing index figures in the US have buoyed hopes of a post-pandemic recovery and improved investors’ sentiment.

The index has bounced up from a key support area at 3,000, where the 50-day SMA and the psychological level are offering support to the near-term downward trend. Below that level, next potential support might be located at 2,935 (61.8% Fibonacci Retracement level of the February-March decline) and then 2,862 (closing of the May 15-19 gap).

On the upside, a clear move above 3,092 (June 26 high) would cancel the near-term downward trend and open the path towards Mid-June highs at 3.155 before June 8, 9 highs at 3,232.

 

S&P 500 daily chart

S&P 500 Index daily chart

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