Analysis of S&P 500 Index Prices

The S&P 500 Index (SPX) rose above the 20-day exponential moving average (EMA) (5,983) on December 24, but the bulls were unable to maintain the higher levels.

The bears pushed the price back below the 20-day EMA on December 27 and extended the drop below the 50-day simple moving average (SMA) (5,941) on December 30. Buyers are expected to vigorously defend the level of 5,853 because if this level is broken, the index will complete a bearish head and shoulders (H&S) pattern. This setup has a target of 5,606.

Buyers will need to push and maintain the price above the 20-day EMA to take control. The index could then rise to 6,050.