The S&P 500 climbed towards the $3,395 level last week, marking a recovery of nearly 6 per cent from its September low.
S&P 500 analysis shows that traders are starting to buy into the index on any meaningful price pullbacks.
Current technical analysis of the S&P 500 shows that a large bullish pattern will form if the price moves towards $3,425.
S&P 500 medium-term price trend
The S&P 500 appears increasingly bullish, as the index starts to consolidate around its key 50-day moving average.
S&P 500 technical analysis shows that a large bullish reversal will form if the price reaches the $3,425 resistance area.
Technical analysis highlights that the index could rally towards the $3,620 area if bulls can break through the $3,425 level.
Multiple daily price closures above the index’s 50-day moving average, around the $3,360 level, is likely to provoke a test of the $3,425 area.
S&P 500 short-term price trend
S&P 500 technical analysis shows that the index only has a bearish bias over the short term while the price trades below $3,310.
The one-hour time frame highlights that a small head-and-shoulders pattern has formed, following the recent rejection from the $3,395 level.
Falling wedge patterns are considered to be powerful reversal patterns. Technical analysis highlights the $3,395 and $4,425 level as short-term upside target.
According to technical analysis, a breach of the $3,325 level is required to activate the bearish pattern, which holds a $50 downside target.
If price moves above $3,395, then a rally towards $3,445 should be expected in the short term.
S&P 500 technical summary
S&P 500 analysis shows that the index is appearing increasingly bullish. Further upside is expected if bulls can gain traction above the $3,395 level.