SPX 500 Consolidates Above Key Support

Technical analysis of Forex market

US equity markets remain subdued as risk appetite takes a backseat. The S&P 500 has pierced through the 30-day moving average, adding pressure on the buy-side.

The price action is again testing the demand area around 4040 after a short- lived rebound. A bearish breakout could trigger a new wave of sell-off to 3900. On the upside, 4185, former support turned into resistance is a major obstacle before the rally could carry on.

In the meantime, sideways actions within a 140-point range may last into the weekend.