The S&P 500 has enjoyed a powerful rally in the last month, and now some traders may anticipate a sideways move.
The first pattern on today’s chart is 5,971, the final weekly close of 2024. The index chopped on either side of that level a few times in January and early February. It stalled there in late February and early March as tariffs were confirmed on Mexico and Canada. SPX peaked just three points below that price on Monday before halting. Is the old resistance still in effect?
Second, SPX made a lower low and a higher high that session. Tuesday was just the opposite. That combination of an outside candle, followed by an inside candle, may suggest a change of direction is coming.
Third, Wilder’s Relative Strength Index (RSI) has turned down after nearing an overbought condition.
If a pullback occurs, traders may eye roughly 5,773 as support. That was the low in January and a high in late March.
Next, prices are historically far above the 50-day simple moving average (SMA). However, the SMA is turning upward. That could suggest the intermediate-term trend has grown more positive, which may keep pullbacks shallow.
Finally, few important events appear to be scheduled before next Wednesday. (Minutes from the last Federal Reserve meeting and Nvidia earnings are both due then.) That lack of catalysts may also create drift – especially with a long holiday weekend approaching.
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TradeStation has, for decades, advanced the trading industry, providing access to stocks, options and futures. If you're born to trade, we could be for you. See our Overview for more.
Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options or futures); therefore, you should not invest or risk money that you cannot afford to lose. Online trading is not suitable for all investors. View the document titled Characteristics and Risks of Standardized Options at https://www.TradeStation.com/DisclosureOptions. Before trading any asset class, customers must read the relevant risk disclosure statements on https://www.TradeStation.com/Important-Information/. System access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors.
Securities and futures trading is offered to self-directed customers by TradeStation Securities, Inc., a broker-dealer registered with the Securities and Exchange Commission and a futures commission merchant licensed with the Commodity Futures Trading Commission). TradeStation Securities is a member of the Financial Industry Regulatory Authority, the National Futures Association, and a number of exchanges.
TradeStation Securities, Inc. and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., both operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Visit https://www.TradeStation.com/DisclosureTSCompanies for further important information explaining what this means.
The first pattern on today’s chart is 5,971, the final weekly close of 2024. The index chopped on either side of that level a few times in January and early February. It stalled there in late February and early March as tariffs were confirmed on Mexico and Canada. SPX peaked just three points below that price on Monday before halting. Is the old resistance still in effect?
Second, SPX made a lower low and a higher high that session. Tuesday was just the opposite. That combination of an outside candle, followed by an inside candle, may suggest a change of direction is coming.
Third, Wilder’s Relative Strength Index (RSI) has turned down after nearing an overbought condition.
If a pullback occurs, traders may eye roughly 5,773 as support. That was the low in January and a high in late March.
Next, prices are historically far above the 50-day simple moving average (SMA). However, the SMA is turning upward. That could suggest the intermediate-term trend has grown more positive, which may keep pullbacks shallow.
Finally, few important events appear to be scheduled before next Wednesday. (Minutes from the last Federal Reserve meeting and Nvidia earnings are both due then.) That lack of catalysts may also create drift – especially with a long holiday weekend approaching.
Check out TradingView's The Leap competition sponsored by TradeStation.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options and futures. If you're born to trade, we could be for you. See our Overview for more.
Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options or futures); therefore, you should not invest or risk money that you cannot afford to lose. Online trading is not suitable for all investors. View the document titled Characteristics and Risks of Standardized Options at https://www.TradeStation.com/DisclosureOptions. Before trading any asset class, customers must read the relevant risk disclosure statements on https://www.TradeStation.com/Important-Information/. System access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors.
Securities and futures trading is offered to self-directed customers by TradeStation Securities, Inc., a broker-dealer registered with the Securities and Exchange Commission and a futures commission merchant licensed with the Commodity Futures Trading Commission). TradeStation Securities is a member of the Financial Industry Regulatory Authority, the National Futures Association, and a number of exchanges.
TradeStation Securities, Inc. and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., both operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Visit https://www.TradeStation.com/DisclosureTSCompanies for further important information explaining what this means.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.