SP500: Is the decline over?

It looks like the situation is coming under control, and yesterday, the SP500 index managed to defend the short-term uptrend line, which confirmed that the index doesn't want to go lower. At least for now.

A strong bounce has occurred, and the SP500 index was trading more than 2% stronger on Wednesday, hovering at around 3,060 USD during the London session. 

Yesterday's emergency rate cut by the Fed wasn't initially taken positively. Still, since equities are driven by liquidity and not by fundamentals, it was a bullish signal, which seems to be confirmed today. Thus, we could see a rally to new record highs over the next days, despite worsening economic outlook.

The first notable resistance now stands at Tuesday's highs of 3,140 USD, while from the intraday perspective, another selling zone is seen at around 3,100 USD.

Om the downside, the support could be near 3,030 USD, where the bullish trend line is located, and while the index trades above it, the short-term appears optimistic. Another demand zone could be near the psychological level of 3,000 USD.

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