The S&P 500 posted its third consecutive weekly loss last week, as US equity markets turned lower following Democrats and Republicans failure to agree on a stopgap spending bill in the US Senate.
S&P 500 analysis shows that downside pressure is starting to accelerate, after bears closed the daily candle below the index’s 50-day moving average for the first-time since April this year.
Current technical analysis of the S&P 500 highlights the $3,100 level as a potential bearish target below the $3,300 level.
S&P 500 medium-term price trend
The S&P 500 looks primed for further losses this week, unless bulls can perform a series of daily price close back above the $3,340 level.
S&P 500 technical analysis shows that a bearish breakout from a falling wedge pattern is gathering momentum.
Technical analysis highlights that now bulls have closed the price below the index’s 50-day moving averages, selling pressure is growing.
Bears may now attack towards the $3,100 area, where the S&P 500 index’s 200-day moving average is currently found.
If bulls can defend the $3,300 level, and move the price back above the index’s 50-day moving average, then further upside advancement towards the $3,370 and $3,425 levels appears possible.
S&P 500 short-term price trend
S&P 500 technical analysis shows that the index has a bearish bias over the short term while the price trades below $3,337.
The four-hour time frame highlights that a bearish head-and-shoulders pattern has now been activated.
Technical analysis shows that sellers performed a series of lower time frame price closes below the neckline of pattern, around the $3,328 level.
The overall size of the bearish pattern suggests that the index could fall towards the $3,050 area over the short-term.
Key support below the $3,328 level is located at the $3,275, $3,200 and $3,100 areas.
S&P 500 technical summary
S&P 500 analysis shows that downside momentum is accelerating after bears closed the daily candle below the index’s 50-day moving averages.
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