Breakout Touches Crucial Barrier
The S&P 500 has clearly broken out recently, marking a week-long rally since surpassing last Friday’s highs. However, the current surge is now approaching a significant hurdle, standing just points away from a key resistance level.
Technical Indicators and Resistance
At present, the 4920 level on the Tradingview CFD is only 20 points below the crucial 161% Golden Fibonacci extension. For those utilizing the ES contracts, this level is roughly 30-40 points from 4967, which represents the same extension. Additionally, this level aligns with the equal leg move of the market’s lows in March 2023 to the highs in July 2023 to the lows in October 2023. Notably, the RSI is indicating a significant divergence on the chart.
Market Outlook
If the market were to stall above the 4900 level and subsequently dip below 4800, it could potentially signal the establishment of a near-term, and quite possibly long-term peak in the broader markets.
