The index closed at its highest level in over three weeks, as price looks to break out of its recent consolidation range upon multiple tests of the 50.0 Fib retracement level at 3,796 towards the end of December. Now, the break back above its 100-day moving average (red line) sees buyers in a decent spot to extend the upside momentum.
In that lieu, S&P 500 futures are up 0.3% so far today with the dollar also sagging as we look towards European trading. Markets are very much still riding on the reverberations from the underwhelming US ISM services report on Friday.
From a technical perspective, buyers have the scope to extend the upside push back towards the 200-day moving average (blue line) as well as the key trendline resistance (white line) from last year.
That region will remain as the pivotal layer of resistance in limiting any further upside in the bigger picture.
