Charts tip S&P 500 to trade sideways for now: Analyst

U.S. two-dollar billsPhoto by Leslie Shaffer

Charts are tipping the S&P 500 index to trade sideways in the short term, said Sameer Samana, global equity and technical strategists at Wells Fargo Investment Institute.

“The S&P 500 index continues to trade in a wide range,” he said in a note on Monday.

After the index’s recent pullback, he said support could be found at the 200-day moving average of 2589, followed by the recent low of 2581 and the August 2017 low of 2426.

On the upside, he said the first resistance level on the way up would be at the 50-day moving average of 2730, followed by the recent high at 2787 and the all-time high at 2873.

In midday trade on Tuesday ET, the index was trading around 2595.89.