HomeContributorsTechnical AnalysisS&P 500 Chart After US President Tests Positive For COVID-19

S&P 500 Chart After US President Tests Positive For COVID-19

The S&P 500 is testing the 21 ema zone again after breaking below for the first time in months. The 21 ema zone is a key bounce or break spot for the next price swing.

Especially now that the U.S. President Trump has tested positive for the Coronavirus Covid 19, the question is open how the financial markets will respond. This article reviews the 4 hour and daily charts.

Price Charts and Technical Analysis

The S&P 500 needs to close below or above the 21 ema zone (21 ema low and high) before a clear winner between the bulls and bears might emerge. Although the long-term trend is clearly up when taking into account that price action is above the long-term moving averages, the news of the US President testing positive for the Coronavirus, one could wonder whether this would create a bearish pressure on the financial markets. In any case, a bearish break below the 21 ema zone still has the previous bottom as potential support. Only a break below that bottom could send it lower to retest the long-term MAs.

The S&P 500 chart is now testing a key support zone. A bearish breakout could send it towards the previous bottom. A bullish bounce or breakout could confirm the potential bullish ABC (purple) correction towards the Fibonacci targets. A break below the bottom, however, means that a larger bearish correction is about to take place via a bearish ABC (light red). With the uncertainty in the US ahead of the elections and the Coronavirus reaching the US President himself, a bearish retracement seems to have better odds at the moment.

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