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March S&P500 Technical analysis: Rally Pauses as Oil Prices Break
March S&P500 Technical analysis: Rally Pauses as Oil Prices Break

The following is the March S&P500 Technical analysis after a range-bound trading session previous week due to Oil prices break and tumbling bonds.

13 March, AtoZForex – The S&P500 surged 7.73 points to 2,372.60 levels up 0.33 percent on Friday’s trading session. The Nasdaq 100 rose 21.92 points to 5,385.90 up 0.41% and Dow Jones Industrial Average surged 0.21 percent to 20,902.98 up 44.79. The U.S. equities ended their longest streak of weekly gains in more than a year as falling oil prices dragged down energy stocks. Also, a sell-off in bonds weighed on companies that benefit from investors seeking regular income.


March S&P500 Technical analysis – Monthly Target

The S&P 500 dropped 0.4 percent to 2,372.60 in its first weekly decline since the period ended on 20 Jan. Moreover, the Small-cap stocks in the Russell 2000 Index declined for the third straight week, falling 2.1 percent for the biggest drop this year. The S&P 500 traded flat during the day on Friday but found enough support near the 2350 level. I believe that the absolute “support” in the market is somewhere near the 2300 level. The market should continue to go much higher and touch a target of 2500 points by the end of March. The SMA 200 line is below the SMA 100 line which signals a growth for S&P 500 in long term basis.


S&P 500 Technical charts: SMA200, SMA100, MACD(12,26,9) and RSI(14) (click to zoom)

S&P 500 Technical Indicators

The economy to keep expanding in the U.S. and recover constantly abroad even despite geopolitical and populist barriers. The technical indicators and moving averages signify strong buy for the index in the monthly basis. Most noteworthy, the relative strength index is 72.509 which is ‘BUY’ and STOCH(9,6) display value of 100.000 which means ‘Overbought’ level. According to Moving average convergence and divergence analysis MACD (12,26) value is 104.660 gives ‘BUY’ signal. In addition, the ultimate oscillator indicator display value of 69.449 which again signify ‘BUY’. The ATR(14) shows the S&P 500 is less volatile and value is 91.3507.


Pivot Points – Support and Resistance levels 

Furthermore, the Fibonacci support and resistance levels are S3 2199.79, S2 2235.72, S1 2299.68  and R1 2399.57, R2 2435.50, R3 2499.46.


Do you think the S&P500 will reach the Target of 2500 points by the end of this month? Let us know in the comments section below.


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