- The S&P 500 pushed up 1.33% on Monday after struggling towards the end of last week.
- The price is coming up to a potential resistance zone.
S&P 500 4-hour chart
The S&P 500 has performed well on Monday after having a tough ride at the end of last week. In the session on Monday, the main losers were once again oil and travel companies. On the upside pharma stocks rose well but the outperforming sector was telecoms. Viacom pushed around 8.69% higher while Dexcom was second on the leaderboard at 7.7% to the good. The move-up came despite earlier reports of a second wave in the Chinese city of Beijing. Obviously this is one of the worst places in the world for a second wave to hit. America still has not dealt with the first initial wave and cases in California, Texas, Florida and Arizona all seem to be rising above the averages for the nation.
The S&P 500 chart below shows the extent of the rally. The price bounced off the 4-hour 200 period moving average and now looks to be heading to the 55 Exponential Moving Average. The support was also very close to the 3000 psychological support area which added more credence to the zone.
On the resistance side the trendline that had been broken recently could be a resistance zone in the next few sessions so it would be prudent to keep an eye on the area. If this is the case then the 3000 level could get broken again and the change of trend from up to down could resume. Where the theory breaks down is if the price pushes past 3130 on the upside. If this level breaks then a return to the highs could be on the cards.
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