S&P 500 technical analysis: Difficult to short

S&P 500 analysis shows that the index recently hit a new all-time trading high as bullish sentiment towards US stocks grows.

Current technical analysis of the S&P 500indicates that the breakout in the index could just be warming up. With the 3,700 level a possible upside target.

S&P 500 medium-term price trend

S&P 500technical analysis shows that the index is trading close to its all-time price high, following a wide-spread rally in US equity markets.

The 0'>S&P 500 has also broken above trendline resistance from a rising wedge pattern, confirming the bulls’ intention to take the index higher over the medium-term.

The daily time frame is showing that a bullish inverted head and shoulders pattern still remains in play, and has yet to reach its upside target.

The overall upside objective of the bullish reversal pattern would take the S&P 500 towards the 3,700 level.

Although the target is still far away, it still remains within the realm of possibility, given the broader uptrend in the index and US equities.

S&P 500 short-term price trend

S&P 500 technical analysis shows that the index remains bullish on all fronts and is trading above all key moving averages.

The four-hour timeframe is showing that bearish MACD divergence is extending down towards the 3,1900 technical area.

Short-term traders may be reluctant to sell the 0'>S&P 500 given that the index has just hit a fresh all-time high.

It is likely that a bearish fundamental catalyst of bearish price pattern is needed at this stage before short sellers will return.

From a strategic point of view, buying dips in the index is still attractive. A reversal of the negative MACD divergence may provide bulls with a new short-term long entry.

S&P 500 technical summary

0'>S&P 500 analysis suggests that the index may rally towards the 3,700 level. Bearish MACD divergence is, however, present on the lower time frames.