S&P 500 Price Analysis: Stuck between a rock and a hard place

The S&P 500 has pushed 1% higher on Monday as risk sentiment improves.
The price bounced off the psychological 3K area to push higher.

Rajan Dhall, MSTA FX Daily

S&P 500 1-hour chart

The S&P 500 chart has converged into a descending wedge formation on the hourly chart below. A break in either direction could help traders determine the future trajectory of the price. Right now the price is headed to the top of the pattern as the market has been positive today. There could be some resistance at the top of the pattern but right now the bull momentum looks like it could break through it.

If the top of the pattern does give way, the red line at 3080.00 could be the next resistance as it was the previous consolidation low support. The Relative Strength Index has lots of room to move to the upside and recently broke through the 50 mid-point. There could be a bearish failure swing set up soon though, as this is when the market makes a lower high wave but the indicator makes a higher high wave.

The market is in no man's land at the moment and a the coronavirus headlines seem to be the main driver of the price. A positive Monday close could be the best tonic for a tough week last week and this week there is lots of data to digest including Friday's NFP announcement.

Additional levels

SP 500

Overview
Today last price	3046.75
Today Daily Change	32.25
Today Daily Change %	1.07
Today daily open	3014.5

Trends
Daily SMA20	3106.41
Daily SMA50	2982.78
Daily SMA100	2916.44
Daily SMA200	3024.95

Levels
Previous Daily High	3092.5
Previous Daily Low	3004
Previous Weekly High	3156.5
Previous Weekly Low	3004
Previous Monthly High	3069.5
Previous Monthly Low	2768
Daily Fibonacci 38.2%	3037.81
Daily Fibonacci 61.8%	3058.69
Daily Pivot Point S1	2981.5
Daily Pivot Point S2	2948.5
Daily Pivot Point S3	2893
Daily Pivot Point R1	3070
Daily Pivot Point R2	3125.5
Daily Pivot Point R3	3158.5

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.

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