On the daily chart below for the S&P 500, we can see that the rally stalled once again at the key 4175 resistance. The buyers have tried to break this level many times in the past without success. Will they manage to get it this time?
The bullish trend for now remains intact as we can see from the moving averages and the series of higher highs. The key supports for the buyers are the trendline, the red long period moving average and the previous resistance now turned support at 4061.
S&P 500 technical analysis
In the 4 hour chart below, we can see that we had a major inverted head and shoulders pattern that formed right at the previous major broken trendline that acted as support for the buyers. The breakout of the neckline led to a rally that stalled at the key 4175 resistance. Since then, the price started to range as the market awaits the US CPI data tomorrow.
For the buyers, strong levels where we may see them piling in are the 4061 support where we have the confluence of the 50% Fibonacci retracement level and the trendline, and the breakout of the 4175 resistance. The sellers, on the other hand may lean on the 4175 resistance to defend the breakout and pile in aggressively in case the price breaks below the trendline and the 4061 support.
In the 1 hour chart below, we can see the current mini range. This may be due to the Easter Holidays as we had the NFP report on Good Friday with little to no reaction and then bigger moves yesterday as the market tried to catch up with the news, although European traders were still on holiday.
It’s likely that a break on either side of the range may lead to an extension of the move, with 4175 as target on the upside and 4061 as target on the downside.
