Welcome to Extreme Investor Network, where we bring you the latest insights and analysis on the stock market, trading, and all things related to Wall Street. In today’s blog post, we will discuss the recent developments in the S&P 500 price action and what it means for traders and investors.
The S&P 500 price recently broke below the 22-day simple moving average (SMA), signaling a shift in sentiment from bullish to bearish. Despite this, bulls are still in control on a larger scale, as evidenced by the recent rise in price. Initially, the bullish trend paused to consolidate between the 5745.91 support and the 5900.12 resistance levels.
However, bulls broke out of this range and made a new high at 6050.88. If the bullish trend is shallow, we may see a retest of the recently broken range resistance before the price continues higher. A break above 6050.88 would confirm a continuation of the bullish trend.
Currently, the price is trading below the 22-SMA, with the Relative Strength Index (RSI) in bearish territory. If bears take control, we could see the S&P 500 price drop below the 5900.12 level and retest the 5745.91 support.
Key support levels to watch include 5900.12, a recent 4-hour resistance turned support, and 5745.91, a 4-hour swing low. On the other hand, key resistance levels are at 6050.88, the recent 4-hour swing high.
Market participants are still digesting the recent changes in US politics, which could result in higher US inflation. Additionally, economic reports from the US will shape the outlook for the Fed’s December meeting. Keep an eye on the retail sales report, as it could increase market volatility depending on whether it comes above or below estimates.
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