The equity markets had a volatile week with the markets reacting early on to the news about the Pfizer COVID-19 vaccine.
This pushed the markets beyond the previous all-time highs near 3588.8 to test a new all-time high of 3674.8. But prices pulled back the very same day to close below the 3588.8 level.
Following this sharp reaction, the S&P500 has more or less stayed flat, trading near the 3588.8 level.
Failure to make any gains above this level is proving to be a big task. This could very well mean that the price level is turning into resistance.
There is also a strong risk that a double top has formed once again.
For the moment, with the VIX index settling back to the lower end of the range, there is scope for the S&P500 to breakout higher.
Any short term pullbacks could see the 50-day moving average and the confluence of the 3388.8 level of support holding prices from making further declines.
As a result, the S&P500 could very well mark a sideways range within the said levels for the near term.