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.

Guillermo Alcala FXStreet

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

Author

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

EUR/USD looks sidelined around 1.1850

EUR/USD remains on the back foot, extending its bearish tone and sliding towards the 1.1850 area to print fresh daily lows on Monday. The move lower comes as the US Dollar gathers modest traction, with thin liquidity and subdued volatility amplifying price swings amid the US market holiday.

GBP/USD flirts with daily lows near 1.3630

GBP/USD has quickly given back Friday’s solid gains, turning lower at the start of the week and drifting back towards the 1.3630 area. The focus now shifts squarely to Tuesday’s UK labour market report, which is likely to keep the quid firmly in the spotlight and could set the tone for Cable’s next move.

Gold battle around $5,000 continues

Gold is giving back part of Friday’s sharp rebound, deflating below the key $5,000 mark per troy ounce as the new week gets underway. Modest gains in the US Dollar are keeping the metal in check, while thin trading conditions, due to the Presidents Day holiday in the US, are adding to the choppy and hesitant tone across markets.

Bitcoin consolidates as on-chain data show mixed signals

Bitcoin price has consolidated between $65,700 and $72,000 over the past nine days, with no clear directional bias. US-listed spot ETFs recorded a $359.91 million weekly outflow, marking the fourth consecutive week of withdrawals.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.