Wall Street closes higher and above a key support level at the end of a tough week


  • After a volatile week, the S&P 500 closes 1.73% higher and 0.77% in the black on Friday.
  • There is a key support/resistance level at 3,159.50 that the price closed above.

S&P 500 line chart

It has been an interesting week for equities as some traders and investors remain unhappy that the US administration cannot agree on the latest coronavirus stimulus bill. Elsewhere the US and China situation has not really escalated as the war of words cooled down. The saving grace was the FAANG stocks earnings releases, Amazon, Apple, Alphabet and Facebook all beat estimates. L Brands was the big winner as the company plans to cut annual costs by USD 400 million going forward. This is a crucial move considering it's facing a steep drop in revenue from disruptions caused by the COVID-19 pandemic. Shares rose 27.15%.

Looking at the chart below, the price is holding above a key previous wave high at the red horizontal line. There has been a lower high created this week but the price will only creat a lower high lower low pattern if 3,209.86 breaks to the downside. On the topside, the green line just below 3,300 is very important next week. If the resistance breaks the trend will be back in full swing and if the COVID package gets signed off on the weekend there could be a gap higher on Monday.

The indicators are looking very mixed. The Relative Strength Index is looking weak as it hangs below the 50 area. The MACD histogram is turning red but the signal lines are above the zero line for now which is not conclusive at all. Overall, this is still an uptrend the market is a short term consolidation phase and next week there could be an important break, so keep an eye on these levels.

S&P 500 technical analysis

Additional levels

SP 500

Overview
Today last price 3234.25
Today Daily Change -11.50
Today Daily Change % -0.35
Today daily open 3245.75
 
Trends
Daily SMA20 3209.78
Daily SMA50 3136.08
Daily SMA100 2931.7
Daily SMA200 3051.9
 
Levels
Previous Daily High 3252.5
Previous Daily Low 3204.5
Previous Weekly High 3293
Previous Weekly Low 3199.75
Previous Monthly High 3233.25
Previous Monthly Low 2936.5
Daily Fibonacci 38.2% 3222.84
Daily Fibonacci 61.8% 3234.16
Daily Pivot Point S1 3216
Daily Pivot Point S2 3186.25
Daily Pivot Point S3 3168
Daily Pivot Point R1 3264
Daily Pivot Point R2 3282.25
Daily Pivot Point R3 3312

 

 

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