S&P500 Back at 3000 Technical support

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The main US index has seen a negative week after price failed to breakout above 3198 handle. This led to strong declines pushing the benchmark index back to the technical support level of 3000, as noted last week.

For the moment, the range between 3198 and 3000 remains in play.

However, the question now is whether the index can rebound off this level and potentially breakout above the 3198 level eventually. It comes at a risk of the index posting a larger correction.

For now, the 200-day moving average alongside the technical support might hold the index from falling further.

Therefore, the upside remains limited unless 3198 gives way.

To the downside, in the event of a close below the 3000 level, the index might see stronger declines. This is also indicative of the weekly bearish candlestick that the index closed into on Friday.

Therefore, if the bearish sentiment rises, the next key support is at 2735.

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