The S&P500 index rose by about 2.37% on the week.
As a result, the index managed to pare losses from the week before.
It also broke past the previous week’s highs and is now back within reach from retesting the previous all-time highs formed two weeks ago.
Price action on the weekly chart suggests a possibility for further gains after the S&P500 index closes above the previous key level of 3588.
Therefore, as long as prices do not close below this level on a weekly basis, we could expect further gains.
This could mean that the S&P500 index could very well continue moving higher.
The risks to the downside remain minimal for the moment. But if the S&P500 breaks down below the 3588 level, then we might see a stronger correction taking place.
The 50-day moving average is likely to act as dynamic support near the 3454 level at the moment.