S&P 500 Index (SPX) Analysis: Key Levels and Expectations.
SPX My Take:Looking at the 4-hour chart of the S&P 500 Index, it's clear that we're approaching a critical juncture. The price recently rallied up to the $5,630 - $5,655 resistance zone, which has been a significant barrier in the past. However, this level has proven to be tough for the bulls to break through, and we're now seeing signs of potential exhaustion.
Key Levels:
Resistance:
$5,620 - $5,630: This is the zone where the price is currently facing resistance. It’s a crucial area to watch because a failure to break above it could result in a pullback.
Support:
$5,480 - $5,440: If we see a rejection from the current resistance, I'm expecting the price to retrace towards this support zone. This area has acted as a strong floor in the past, and it's likely where buyers might step in again.
Trendline Support:
The upward trendline, originating from the lows earlier this year, is still intact. This trendline could provide additional support around the $5,280 level if the price breaks through the aforementioned support zone.
Expectations:
Pullback Potential:
Given the current price action, I wouldn’t be surprised to see a pullback from this resistance zone. The first area I'll be watching for potential support is the $5,480 - $5,440 zone. A break below this could bring us down to test the trendline around $5,280.
Continuation of the Uptrend:
If the bulls manage to push through the $5,620 - $5,630 resistance zone, we could see a continuation of the uptrend with a possible target towards $5,700 and beyond. But for now, I’m leaning towards the possibility of a short-term pullback before any further upside.
Food for Thoughts:
Right now, I’m closely watching how the price reacts around this resistance zone. A pullback could offer a good buying opportunity, especially if it holds above the $5,480 - $5,440 support area. On the other hand, a strong breakout above $5,630 would signal that the bulls are in control and could push the market to new highs.
Stay tuned for more updates as the situation develops! Happy Trading from Deno Trading!
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