Search ForexCrunch
  • The S&P 500 is trading 1.9% lower as the COVID-19 pandemic worsens. 
  • There is key support zone at 2936.50 to watch out for next week.

S&P 500 4-hour chart

Next week is setting up to be massive as the Chinese manufacturing data is close by and we get the latest NFP data. The price action has been pretty bearish in the session (on Friday) with a new wave low being printed. The price has moved back up since then and it could be a potential support zone for the rest of the session (3017.25).

This is now the fourth consecutive lower high lower low pattern but the overall formation is pretty tough to read. The main support level on the chart is holding at 2936.50 and if it breaks and closes to the downside it would be a bearish technical signal for the Dow Theorists and the Elliott Wave analysts amongst us. 

There are some light blue lines on the chart that shows a broadening channel. The bottom of this channel was used as support yesterday and it could cause some problems today. But for next week the aforementioned support zones will be very important and there are some key data releases that could prove to be the catalyst for a break.

S&P 500 Technical Analysis

Additional levels