S&P 500 Futures Price Analysis: Eye 4,000 amid bullish technical setup

S&P 500 futures look north amid bull cross on the 4H chart.
Reflation trades to continue favoring riskier assets.
The RSI holds firmer just beneath the overbought region.

S&P 500 futures are flirting with record highs just above the 3,900 level, as the bulls continue to benefit from the US stimulus optimism induced renewed reflation trade prospects.

The bulls extended the rally following the inverse head-and-shoulders breakout on the four-hour chart spotted last Thursday.

The measured target is placed at 4,010, with the bullish crossover confirmed earlier today to provide that extra zest to the buyers to refresh record highs. The 50-simple moving average (SMA) pierced the 100-SMA from below, validating the bullish formation on the said time frame.

Ahead of that, the psychological 3,950 level could offer some resistance on S&P 500 futures’ upward journey.

Looking at the hourly chart, the futures tied to the S&P 500 index have confirmed a death cross earlier in the Asian session.

The 50-hourly moving average (HMA) pierced through the 200-HMA from above, suggesting that there is further scope to the downside.

In contrast, any corrective pullbacks could meet strong support at bullish 21-SMA at 3,876. Further south, the pattern neckline resistance now support around 3,840 could challenge the bearish commitments.

All in all, the path of least resistance appears to the upside, further supported by the Relative Strength Index (RSI), which holds firmer just below the overbought region, near 68.00.

S&P 500 Futures: Four-hour chart

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.