S&P 500: technical analysis and trading recommendations_11/30/2021


As we noted above, S&P 500 futures have dropped sharply in the past few days. They lost 2.5% last Friday, dropping to the strong support level 4580.0 (ЕМА50 on the daily chart). Correction was observed in the world stock market yesterday. Market participants tried to re-assess the degree of threat to the global economy from the new strain of coronavirus, and many global stock indexes rebounded from local lows, almost half having won back losses incurred on Friday. On Tuesday, the decline in the indices resumed, and S&P 500 futures fell more than 1.4% since the opening of the trading day, returning to the zone of strong support levels 4580.0, 4600.0 (the lower line of the rising channel on the daily chart).

Nevertheless, the current decline should be considered as corrective for now and should be used to build up or open new long positions in the S&P 500. The positive dynamics of the S&P 500 continues and a steady rise into the zone above the resistance level 4617.0 (ЕМА200 on the 4-hour chart) will be a signal for the resumption of long positions, and the breakdown of the local resistance level 4728.0 (recent record highs) will confirm the scenario for the further growth of the index.

In an alternative scenario, a breakdown of the support level 4580.0 could trigger a further decline in the S&P 500 with long-range targets at support levels 4405.0 (ЕМА144 on the daily chart), 4300.0 (ЕМА200 on the daily chart), 4225.0 (ЕМА50 on the weekly chart).

Support levels: 4600.0, 4580.0, 4405.0, 4300.0, 4225.0

Resistance levels: 4617.0, 4670.0, 4688.0, 4728.0, 4800.0

Trading recommendations

Sell Stop 4570.0. Stop-Loss 4635.0. Targets 4500.0, 4405.0, 4300.0, 4225.0

Buy Stop 4635.0. Stop-Loss 4570.0. Targets 4670.0, 4688.0, 4728.0, 4800.0