The S&P 500 fell as strong US economic activity fanned fears of restrictive rates for a longer period of time. On the daily chart, the index is drifting towards the daily support of 3700 after coming off November’s high of 4130. This means that the price action is at a crossroads and could stay in this range before a breakout dictates the next direction. In the short-term, a brief bounce came to a halt at 3890, leading to a test of the critical demand zone above 3700. Limited buying may emerge as the RSI returns to the neutral area.
