The S&P500 index was seen giving up the gains after prices rose to a weekly high of 3293.1.
Prices turned bearish following a bearish engulfing pattern that emerged on Thursday’s close. Following this, price action continued lower to trade near the price level of 3200.
With prices testing this level, we could expect the S&P500 index to remain supported to the upside.
A break down below this level could accelerate the declines. Price action could potentially settle within the range of 3200 and 3000.
However, price action could be supported near the 50-day moving average around the 3100 level.
With the market sentiment remaining mixed, we could expect to see some declines in the coming week.