S&P 500 has bounced from support at around 4,100. Combined with RSI divergence which is indicating a weakening of the downtrend, correction up to minor resistance at around 4,230 and the 200 daily Moving Average seems likely.
If S&P500 is closing above 4,260 there could be further upside potential to 4,331.
However, the declining 55 daily Moving Average indicating underlying bearish trend will provide resistance suggesting further upside could be quite a struggle.
If S&P 500 is failing to close back above the 200 Moving Average selling pressure will resume pushing the Index lower towards 4K.
Medium-term S&P 500 is in a down trend (lower lows and lower highs) supported by negative sentiment on RSI.
Currently hovering around the declining 55 and the rising 100 Moving Averages. With one of them declining and the other rising there is a conflict of the underlying medium-term trend.
However, for S&P 500 to reverse the medium-term downtrend a close above 4,394 is needed. A first indication of this scenario to play out would be weekly RSI closing above 60 threshold.