S&P 500 Price Analysis: The bulls look set to hit the pre-coronavirus high

• The S&P 500 is trading over 2% higher despite stocks struggling at the end of last week.
• The price has now broken the previous have high of 3,291.00.

S&P 500 4-hour chart

There seems to be so stopping US stocks at the moment as the S&P 500 breaks the previous wave high. This confirms the recent trend of higher highs and higher lows. The pre-COVID-19 high of 3,393.52 looks to be the target as the Nasdaq makes new all-time highs almost on a weekly basis. The S&P 500 index has been pushed higher by medical names with Varian (NYSE:VAR) leading the way due to takeover reports. Elsewhere in the index, oil and tech names are performing well.

The chart below shows the extent of the move higher this afternoon. As we head to the close the price is still holding above the key support area of 3,291.00. There is a level close by that could provide some near term resistance at the green trendline. If there is to be a move lower the main support areas could be either the blue or black horizontal lines below the current price at 3,291.00 and 3,233.25 respectively. 

The indicators are also clearly bullish at the moment. The MACD histogram is green and the signal lines have bounced off the mid-level to move higher. The Relative Strength Index is also moving towards the overbought zone but there is still space for a move higher.

The market is clearly in an uptrend, some of the other European bourses like the FTSE 100 and DAX took a bigger hit on Friday. The S&P 500 seems to be dragging them all up. If the fiscal stimulus bill is passed that will be bullish and the PMI’s today have also clearly helped. 

Additional levels