S&P 500 Price Analysis: Stuck between a rock and a hard place

• The S&P 500 has pushed 1% higher on Monday as risk sentiment improves.
• The price bounced off the psychological 3K area to push higher.

S&P 500 1-hour chart

The S&P 500 chart has converged into a descending wedge formation on the hourly chart below. A break in either direction could help traders determine the future trajectory of the price. Right now the price is headed to the top of the pattern as the market has been positive today. There could be some resistance at the top of the pattern but right now the bull momentum looks like it could break through it. 

If the top of the pattern does give way, the red line at 3080.00 could be the next resistance as it was the previous consolidation low support. The Relative Strength Index has lots of room to move to the upside and recently broke through the 50 mid-point. There could be a bearish failure swing set up soon though, as this is when the market makes a lower high wave but the indicator makes a higher high wave. 

The market is in no man's land at the moment and a the coronavirus headlines seem to be the main driver of the price. A positive Monday close could be the best tonic for a tough week last week and this week there is lots of data to digest including Friday's NFP announcement. 

Additional levels