SPX 500 Returns to All-Time Highs
During the last session, the SPX 500 index gained more than 1.2% following the release of PPI data in the United States. The core PPI (m/m) remained in line with expectations at 0.3%, providing a slight relief to the market, which had been on the edge after annual CPI inflation came in at 3.0%, exceeding the 2.9% forecast.
This mixed inflation data has given the U.S. index an opportunity to recover, as it remains uncertain whether the Federal Reserve will continue its aggressive interest rate policy. Persistently high rates have been impacting domestic consumption in the U.S. for several months, and if the central bank maintains rates at 4.5% in upcoming decisions, it could eventually become a bearish factor for the SPX 500.
Momentum Builds
In recent weeks, the SPX 500 had been trading within a sideways range, with a ceiling at 6,080 points and a floor at 5,840 points. However, the growing buying momentum has now pushed the index back toward all-time highs. If bullish pressure remains strong through the end of the week, a breakout from this range could pave the way for a more significant upward movement.
MACD Indicator
Both the signal line and the MACD line remain above the neutral level at 0, adopting a steady upward slope.
The histogram has begun to oscillate slightly above the zero level.
If these conditions persist over the next sessions, bullish momentum could continue in the short term.
Key Levels to Watch:
By Julian Pineda, CFA – Market Analyst
This mixed inflation data has given the U.S. index an opportunity to recover, as it remains uncertain whether the Federal Reserve will continue its aggressive interest rate policy. Persistently high rates have been impacting domestic consumption in the U.S. for several months, and if the central bank maintains rates at 4.5% in upcoming decisions, it could eventually become a bearish factor for the SPX 500.
Momentum Builds
In recent weeks, the SPX 500 had been trading within a sideways range, with a ceiling at 6,080 points and a floor at 5,840 points. However, the growing buying momentum has now pushed the index back toward all-time highs. If bullish pressure remains strong through the end of the week, a breakout from this range could pave the way for a more significant upward movement.
MACD Indicator
Both the signal line and the MACD line remain above the neutral level at 0, adopting a steady upward slope.
The histogram has begun to oscillate slightly above the zero level.
If these conditions persist over the next sessions, bullish momentum could continue in the short term.
Key Levels to Watch:
- 6,082 points – The most critical resistance level at the moment, corresponding to the previous all-time high. Sustained price action above this level could reinforce the current bullish bias, opening the door to a stronger uptrend.
- 5,960 points – Nearby support, aligning with the mid-range of the consolidation phase and coinciding with the Ichimoku cloud and the 50- and 100-period moving averages. If price action falls back below this level, it could strengthen selling pressure and delay the possibility of new highs in the short term.
- 5,840 points – Distant support level, where a pullback to this zone could put the long-term uptrend at risk.
By Julian Pineda, CFA – Market Analyst
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.