The S&P 500 appears to have successfully broken out of the consolidation and corrective conditions that dominated it during the past week, recording a strong upward rebound and surpassing important pivotal resistance levels. It is now trading above the 5450 level, indicating a clear technical shift towards the upside in the short term, awaiting confirmation from technical momentum to break higher levels.
Technical Overview of Price Action
- Current Price: 5452.56
- General Trend: Up (New Technical Signal)
- Next Resistance Level: 5495.12
- Nearest Current Support: 5420.50
After the index rebounded from the 5331.45 level, it maintained its positive momentum, supported by positive moving averages, and is currently facing technical resistance at 5495, which, if broken, would push the market to new levels.
Technical Analysis
Technical Indicators:
- MACD: Clearly positive with a strong upward trend, reflecting continued upward momentum.
- Stochastic: In the overbought zone (>86), which could lead to a respite or a minor correction in the short term.
Daily Forecast – Trading Scenarios
Positive Scenario:
- A steady break of 5495 will push the index towards 5548 and then 5580 as potential short-term targets.
Negative Scenario (Technical Correction):
- If the price fails to break 5495 and begins to decline below 5420, it may retest the support at 5331.
Trading strategies levels on Buy/Sell level
| SP500 | In case of buying | in case of selling |
| Entry point | 5495.12 | 5377.73 |
| Target Point 1 (TP1) | First resistance: 5548.48 | First support: 5331.49 |
| Target Point 2 (TP2) | Second resistance: 5590.74 | Second support: 5300.23 |
| Stop Loss (SL) | 5377.73 | 5495.12 |
The S&P 500 index is showing strong signs of a clear recovery and a technical shift to the upside, but resistance at 5495 represents the critical barrier to confirm the continuation of this trend. Any breakout will restore risk appetite, while caution is required if the breakout fails.
