S&P 500 Price Analysis: The index just moved above the key support after a small scare

• The S&P is only marginally lower after a terrible start on Thursday.
• There are some key levels that the bulls need to watch.

S&P 500 4-hour chart – Are the bulls back in charge?

The S&P 500 has a very harsh start to the session and trading 1,41% lower at one point within the first hour of trading. Now more than half of that move has been pared and this means the price is above the key support area of 3,157.57. If the bulls are set to continue the bull run then the key resistance is the level at the top of the chart at 3,293.00. On the downside, the red support level could be the point where the market finds support if the bulls manage to get hold of the market once again. 

The indicators are looking like they are about to turn to the upside. The MACD histogram is still red but the bars are diminishing in size. The signal lines are also grappling with the mid-zone and could move in either direction at the moment. The Relative Strength Index is just above the 50 area and pointing higher but only just.

Predictably the bottom of the S&P is dominated by oil names as WTI trades 2.64% lower. On the topside, UPS are in the top two after the US administration confirmed a rescue deal for the workers pay. Apache are the only oil name near the top of the leaderboard after the company reported a “substantial” light oil and condensate find in Suriname at Block 58 offshore the South American country.

Overall, the index is still looking positive but only just. Any move below the blue support level could mean that the bears are back in charge and a further extension to the 3,154.44 support could be possible. The bulls could be looking to break the wave high at the green resistance zone and if that breaks the bull trend is firmly back on. 

Additional levels