The S&P 500 is one of the largest and the closest-watched indices in the world. The index is made up of the biggest public companies in the United States. Blue chip companies like Apple, Microsoft, and Salesforce make the index. The companies in this index are then divided by their sectors, which include materials, technology, energy, utilities, telecoms, pharmaceuticals, financial, retail, and real estate.

This year, the S&P 500 index has managed to recover from the declines witnessed in December, when it reached a low of $2327. Since then, it has reached a high of $2818. There are a number of reasons why this has happened. First, the Federal Reserve has moved from the previous hawkish statements and adopted a policy of patience. This year, the Fed has pointed that it may not have any hikes while traders believe that one rate hike could happen. Second, United States and China have been having talks with the aim of solving the trade issues. Already, there are hopes that the two could sign a deal within a few weeks. Third, the earnings released recently were a bit better than expected. In addition, the US economy is on track to have the longest recovery since 1945.

The recovery in the index has been hampered by a number of issues such as Brexit and the fears of a global economic slowdown. Investors are also concerned about whether US earnings have peaked. In addition, they are afraid about the lack of a catalyst that can propel the stocks higher. This is because the key issues such as the Fed and trade have been resolved.

As shown in the chart below, the index has made a V-shaped recovery since the December lows. This price is above the Supertrend indicator and all the short and medium-term moving averages. The index also appears to have found some resistance. In the coming days, the index could continue to move up to retest the important resistance levels of $2900.

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