S&P 500: Technical outlook and review

S&P 500 chalks up largest one-month gain since mid-2022

November finished higher by nearly 9.0%; it was a cracking month for the S&P 500, chalking up its largest one-month gain since July 2022 and closing on the doorstep of the 4,607 top printed in July. You will note that from the monthly timeframe, we can see that the Index is entrenched within a longer-term uptrend, and a break beyond 4,607 could pave the way to the all-time high of 4,818.

According to the weekly chart, the week finished shaking hands with a resistance level of 4,595, a base the Research Team have banged the drum for over the past couple of weeks. If we clear offers around this level this week, space to explore higher terrain throws resistance at 4,743 into the mix as potential resistance in the coming weeks, sheltered just south of 4,818.

The Relative Strength Index (RSI) on both the monthly and weekly charts indicate positive momentum (> 50.00) and exhibit room to push higher until reaching overbought conditions.

Moving across to the daily timeframe, price action helped reaffirm the bullish presence by rupturing resistance at 4,578 last week (now a marked support level). This followed a retest of support at 4,541, as was noted as a possibility in last week’s week-ahead post. Subsequent buying exposes the 4,607 top (circled) mentioned above on the monthly timeframe, followed by daily resistance at 4,653.

Going forward

While there is certainly a ceiling of resistance for buyers to contend with this week: weekly resistance at 4,595 and the July peak at 4,607, the strength of buyers is hard to overlook. As a result, any retest seen at daily support from 4,578 this week could bolster dip buying. Additionally, a breakout beyond 4,607/4.595 resistance may encourage further upside towards daily resistance at 4,653.

Charts: TradingView

Share: Feed news

This material on this website is intended for illustrative purposes and general information only. It does not constitute financial advice nor does it take into account your investment objectives, financial situation or particular needs. Commission, interest, platform fees, dividends, variation margin and other fees and charges may apply to financial products or services available from FP Markets. The information in this website has been prepared without taking into account your personal objectives, financial situation or needs. You should consider the information in light of your objectives, financial situation and needs before making any decision about whether to acquire or dispose of any financial product. Contracts for Difference (CFDs) are derivatives and can be risky; losses can exceed your initial payment and you must be able to meet all margin calls as soon as they are made. When trading CFDs you do not own or have any rights to the CFDs underlying assets.

FP Markets recommends that you seek independent advice from an appropriately qualified person before deciding to invest in or dispose of a derivative. A Product Disclosure Statement for each of the financial products is available from FP Markets can be obtained either from this website or on request from our offices and should be considered before entering into transactions with us. First Prudential Markets Pty Ltd (ABN 16 112 600 281, AFS Licence No. 286354).