The index is flirting with an important resistance zone at 3,233.25

The S&P 500 is trading 0.61% higher at the start of the week.
Although the price action has been positive there are some key levels higher up.

S&P 500 4-hour chart

From a technical analysis perspective, the S&P 500 index is lying in a very interesting zone at the moment. A break back above 3,233.25 would be bullish but a break at the wave high 3,291.00 would keep the uptrend intact. The war of words between the two economic superpowers America and China did not escalate over the weekend and this seems to be one of the main reasons the equities markets have started the week on the front foot. This week some of the biggest firms in the US report their latest earnings figures so look out for some volatility.

Back to the chart and the price broke the channel formation to the downside. There is a key support at the red line near 3,157.83 should the price get that low but at the moment the upside levels are in focus.

Looking at the indicators and they have taken a bullish turn on Monday. The Relative Strength Index edged above 50. The MACD histogram is still red but the histogram bars are getting smaller in size and a crossover could be near. The signal line and lagging line are also still above the mid-point so this indicates the trend is still positive.

All in all, this week will be dictated by earnings, US-China and US fiscal stimulus decisions. The levels mentioned in this article could serve as good clues to how much bullishness or bearishness is taken from these events so keep an eye.