- S&P 500 recovers majority of early losses on Monday.
- 200-day SMA aligns as the initial resistance in the near-term.
The S&P 500 Index (SPX) lost nearly 5% last week and registered its biggest weekly percentage decline since the end of March. Although the index opened sharply lower on Monday and touched its worst level at 2,965 since May 22nd, it staged a rebound and erased a large portion of the early losses. As of writing, the SPX was down 0.85% on the day at 3,015 points.
S&P 500 technical outlook
If the index fails to close the day above the 200-day SMA, which is currently seen at 3,020, the selling pressure could remain intact. The 50-day SMA and the 100-day SMA seem to have formed a strong support in the 2,900-2,950 area. The Fibonacci 61.8% retracement of the sharp drop witnessed in March is also located in the same region, strengthening the support.
On the upside, the SPX could target 3,100 (Fibonacci 78.6% retracement) if it clears the 200-day SMA. Ahead of that level, the 20-day SMA could act as an interim resistance at 3,060.
Additional technical levels
Additional technical levels
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