SP500 index declines on Monday

The SP500 index erased the overnight losses and was trading half a percent weaker during the EU session, last seen at around 2,925 USD.

The primary support could be located at previous highs of 2,900 USD, and as long as the index trades above this zone, the medium-term outlook seems bullish. The very short-term trend could be bearish as the index might want to retest the mentioned support.

Another level to watch will be at 2,880 USD, where May's uptrend line is located. If the price drops below these two supports, a deeper correction toward 2,830 USD could occur.

Alternatively, if bulls retake the control, the intraday resistances are located at 2,940 USD and 2,950 USD. If not held, the price could revisit April' highs of 2,970 USD, or potentially the critical level of 3,000 USD. That is the dominant resistance as it is an intense psychological level, and the 200-day moving average is also located there.

Sentiment still seems bullish, despite worsening fundamentals, and investors are buying every small dip. This mood could persist until the index drops below 2,780 USD, which is currently far away.
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