S&P500 index closed out last week with modest declines.
However, price action remains perched near all-time highs.
Over the week, the leading US equity index briefly traded below the 3674 level before price was rejected. There was no seasonal Santa Claus rally with the equity index.
On the contrary, the S&P500 index was seen trading rather subdued.
With price action settled well above the 3674 level, we could expect to see a continuation to the upside. This could potentially open the S&P500 index to post new highs.
Watch the price level near 3674 in the coming week.
If price action closes below this level, then we could expect to see some declines.
The 50-day moving average which currently sits near 3567 is likely to offer short-term dynamic support.
However, if the S&P 500 loses this support, then we could expect to see a correction down to the 3388 level of support.