S&P 500 Price Analysis: The market edges closer to the all-time high

S&P 500 4-hour chart

The S&P 500 has printed as high as 3,350 on Friday and is only 1.19% away from the all-time high at 3,393.50. This will be a major coup as the market has to deal with major economic disruptions. Even with the trade war between the US and China and the COVID-19 pandemic equities are still showing their resilience. Much of this has to do with the amount of liquidity that has been pumped in the system by the worlds central banks but from a technical standpoint, the trend is still moving.

Looking at the chart, it seems the bulls are looking to target the all-time high at the red horizontal line. If there is to be a retracement then there are a few key support zones under the current price. The first is the black upward sloping trendline that connects the top of the two previous peaks. Then is the previous wave high at 3,293.00 and the next wave high support at 3,233.25.

The indicators are understandably bullish too. The Relative Strength Index is at the overbought zone but this does not necessarily mean there will be a pullback. The MACD histogram is green and the signal lines are above the mid-point. 

Overall, there is nothing to suggest this trend will end any time soon from a technical standpoint. For now, the buy on dips scenario is playing out well and should remain the ethos. 

Additional levels