S&P 500 Price Analysis: Decent gap higher take the index closer to an important resistance

• The S&P 500 jumped another 0.77% higher on Tuesday. 
• There is still a key level above the current level at 3328.45.

S&P 500 daily chart

The S&P 500 has continued its relentless rally on Tuesday and is currently 0.73% higher. Interestingly this move is being led by energy and retail names which have struggled in recent times. Some analysts are attributing today's rise to the Eurogroup agreement on the coronavirus fund and also USD weakness could make US stocks seem more attractive to longer-term investors. 

Looking at the chart, the previous wave high of 3233.13 has now been conclusively taken out. Now the next resistance level is at the orange line at 3328.45. This is the gap where the sell-off really kicked up a notch and there was also a wave resistance there in the past. If the zone is broken then the next target for the bulls will surely be the all-time high of 3393.52. Of course, there needs to be support levels too and the aforementioned previous wave high at 3233.13 is the best candidate. Beyond that, there are two trendlines on the chart to keep an eye on. 

The MACD is in full bullish move as the signal lines are above the mid-point and the histogram is also in the green. The Relative Strength Index is headed to a more positive overbought area and there is still space to the upside. Overall, this uptrend is pretty strong and although the orange level could be a resistance zone the likelihood of it being broken seems pretty high at the moment. 

Additional levels