{"id":2072,"date":"2020-12-31T11:29:24","date_gmt":"2020-12-31T11:29:24","guid":{"rendered":"https:\/\/youtrading.com\/en\/?p=2072"},"modified":"2020-12-31T11:41:48","modified_gmt":"2020-12-31T11:41:48","slug":"sp-500-technical-analysis-reversal-pattern-points-to-bright-2021","status":"publish","type":"post","link":"https:\/\/youtrading.com\/en\/sp-500-technical-analysis-reversal-pattern-points-to-bright-2021\/","title":{"rendered":"S&#038;P 500 Technical Analysis &#8211; Reversal Pattern points to bright 2021"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"2072\" class=\"elementor elementor-2072\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<div class=\"elementor-inner\">\n\t\t\t\t<div class=\"elementor-section-wrap\">\n\t\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-f0a8184 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"f0a8184\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-333bc83\" data-id=\"333bc83\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-4712510 elementor-widget elementor-widget-text-editor\" data-id=\"4712510\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>The <a href=\"https:\/\/bit.ly\/3mx6EMD\" target=\"_blank\" rel=\"noopener\">S&amp;P 500<\/a> looks set to close 2020 out with an impressive gain of around 15 percent, marking an incredible turnaround for the index following the early year flash crash towards the 2,190 support level.<\/p><p>Positive news surrounding the COVID-19 relief bill has boosted the index back to new all-time highs, alongside the inclusion of <a href=\"http:\/\/bit.ly\/2OccOTY\" target=\"_blank\" rel=\"noopener\">Tesla Inc<\/a> in to the S&amp;P 500, which is now the sixth-largest stock inside the index.<\/p><p>Going into 2021 the index is well-placed to weather further economic storms driven by the COVID-19 pandemic, as many of heavyweight stocks inside the S&amp;P 500 benefit from the new trend of working from home.<\/p><p>The top 5 stocks inside the S&amp;P 500 are currently <a href=\"http:\/\/bit.ly\/2Zmw200\" target=\"_blank\" rel=\"noopener\">Apple<\/a>, <a href=\"http:\/\/bit.ly\/2J3MDwb\" target=\"_blank\" rel=\"noopener\">Microsoft<\/a>, <a href=\"http:\/\/bit.ly\/2P2PglH\" target=\"_blank\" rel=\"noopener\">Amazon<\/a>, <a href=\"http:\/\/bit.ly\/2NhH3Yk\" target=\"_blank\" rel=\"noopener\">Facebook<\/a>, and Alphabet. All of these tech stocks have been beneficiaries of the COVID-19 crisis, particularly in the aftermath, and have potential to rally in 2021.<\/p><p>In terms of the actual best performing stocks for 2020 inside the index, Tesla, <a href=\"http:\/\/bit.ly\/2MZ2C1j\" target=\"_blank\" rel=\"noopener\">Nvidia<\/a>, <a href=\"https:\/\/bit.ly\/2zRFu07\" target=\"_blank\" rel=\"noopener\">PayPal<\/a>, Etsy, and currently L Brands lead the way. PayPal in particular looks bullish going into 2021, due to the payment companies recent inclusion of cryptocurrencies such as Bitcoin, Ethereum, and Litecoin, which continue to soar in value almost on a daily basis.<\/p><p>In terms of upside potential for the index itself, technical analysis is painting a bullish price picture, following the recent breakout above the the September 2020 trading high, around the 2,590 level.<\/p><p><strong>S&amp;P 500 Short-Term Technical Analysis<\/strong><\/p><p>The four-hour time frame shows that a major range break has recently taken place, following the late-November breakout above the former yearly-high, around the 3,580 level.<\/p><p>A breakout from a horizontal price channel can clearly be seen across the mentioned time frame. According to the size of the horizontal price channel, the S&amp;P 500 can move higher by around 400 points in the short-term, which means that bulls may be preparing to rally towards the 4,000 resistance level.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-219acde elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"219acde\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-6addeae\" data-id=\"6addeae\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-cf4f630 elementor-widget elementor-widget-image\" data-id=\"cf4f630\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-image\">\n\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1007\" height=\"491\" src=\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2020\/12\/Usa500-4H.png\" class=\"attachment-large size-large wp-image-2075\" alt=\"\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-4150cad elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"4150cad\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-a1c9f2d\" data-id=\"a1c9f2d\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-6496290 elementor-widget elementor-widget-text-editor\" data-id=\"6496290\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>Source by ActivTrader.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-a95fc4f elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"a95fc4f\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-5a70eea\" data-id=\"5a70eea\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-7597cd0 elementor-widget elementor-widget-text-editor\" data-id=\"7597cd0\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>Lower time frame analysis shows that bearish MACD price divergence has formed during the latest rally towards the 3,750 area. According to technical analysis, the bearish divergence extends down towards the 3,550 area.<\/p><p>If the negative divergence is reversed, it may present an excellent chance for traders to buy into the index from a more advantageous position in 2021.<\/p><p><strong>S&amp;P 500 Medium-Term Technical Analysis<\/strong><\/p><p>Looking at the daily time chart, an extremely large bullish reversal pattern has been activated after the index started to move above the 3,400 technical level.<\/p><p>According to the overall size of the inverted head and shoulders pattern, the index could rally towards the 4,600 resistance level over the medium to long-term.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-7ee10b2 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"7ee10b2\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-7d668f2\" data-id=\"7d668f2\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-6ee796d elementor-widget elementor-widget-image\" data-id=\"6ee796d\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-image\">\n\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1003\" height=\"491\" src=\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2020\/12\/Usa500-1D.png\" class=\"attachment-large size-large wp-image-2076\" alt=\"\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-8336fa2 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"8336fa2\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-db1abeb\" data-id=\"db1abeb\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-d122e31 elementor-widget elementor-widget-text-editor\" data-id=\"d122e31\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>Source by ActivTrader.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-760da7e elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"760da7e\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-090593b\" data-id=\"090593b\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-5d5b624 elementor-widget elementor-widget-text-editor\" data-id=\"5d5b624\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>The daily time frame is showing that bearish MACD price divergence has formed aswell, and it is currently extending down towards the 3,550 support area.<\/p><p>It is also noteworthy that the Relative Strength Index is also showing sizable amounts of negative price divergence. Traders should note that the divergence started around the 3,510 level.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>The S&amp;P 500 looks set to close 2020 out with an impressive gain of around 15 percent, marking an incredible turnaround for the index following the early year flash crash towards the 2,190 support level. Positive news surrounding the COVID-19 relief bill has boosted the index back to new all-time highs, alongside the inclusion of [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":2073,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[8,6,9,2,13],"tags":[158,151,63,41,161,128,62,159,160,46,61],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v17.6 (Yoast SEO v20.11) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>S&amp;P 500 Technical Analysis - Reversal Pattern points to bright 2021 - Youtrading UK<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/youtrading.com\/en\/sp-500-technical-analysis-reversal-pattern-points-to-bright-2021\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"S&amp;P 500 Technical Analysis - Reversal Pattern points to bright 2021\" \/>\n<meta property=\"og:description\" content=\"The S&amp;P 500 looks set to close 2020 out with an impressive gain of around 15 percent, marking an incredible turnaround for the index following the early year flash crash towards the 2,190 support level. Positive news surrounding the COVID-19 relief bill has boosted the index back to new all-time highs, alongside the inclusion of [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/youtrading.com\/en\/sp-500-technical-analysis-reversal-pattern-points-to-bright-2021\/\" \/>\n<meta property=\"og:site_name\" content=\"Youtrading UK\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/YouTradingEnglish\/\" \/>\n<meta property=\"article:published_time\" content=\"2020-12-31T11:29:24+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-12-31T11:41:48+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2020\/12\/GettyImages-1282728066.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"553\" \/>\n\t<meta property=\"og:image:height\" content=\"311\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Nathan Batchelor\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Nathan Batchelor\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/youtrading.com\/en\/sp-500-technical-analysis-reversal-pattern-points-to-bright-2021\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/youtrading.com\/en\/sp-500-technical-analysis-reversal-pattern-points-to-bright-2021\/\"},\"author\":{\"name\":\"Nathan Batchelor\",\"@id\":\"https:\/\/youtrading.com\/en\/#\/schema\/person\/88ce8e6688d6c690a83e6cbeee2eccab\"},\"headline\":\"S&#038;P 500 Technical Analysis &#8211; 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