Bears Halted the S&P 500’s 5-Week Winning Streak: Is 4,200 the Next Possibility?
A five-week winning streak that took the S&P 500 index from 4,100 points to a high of 4,450 points, came to an end on Friday.
However, the S&P 500’s recent rapid rise has been too fast, considering how low stocks were in March, triggering technical red flags.
The RSI, a momentum indicator that evaluates overbought or oversold levels, advanced deeper into overbought zone last week, sparking the comeback of the bears who have noticed too much optimism from the bulls.
Key Levels to Watch Next For S&P 500:
If the bears take over the short-term trend, as recent price action might indicate, the S&P could drop toward the 50-day moving average support level around the 4,200 area. This might imply a 5.5% drop from June highs, and it would be a crucial test to see how strong buyers are on the downside.
Then, the zone between 4,190 and 4,210 was also a significant resistance zone this year, and its breakout drove the rally extension in June.
If the support at 4,200 gives way to the bears’ wrath, it could result in more bearish sentiment. In this scenario, 4,127 points would be tested, which is a 50% retracement from the 2023 low-to-high range.
Source: Benzinga
Disclaimer: Investing involves risk and the potential to lose principal. Past performance does not guarantee future results. This is for information and illustrative purposes only. It should not be relied on as advice or recommendation.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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MomoTM : Below $3,999 is the target
Peanny : It’s imminent. Yep
Chad Jones3 : 3950
DwightSJacob : Target is a target area of gain?
SpyderCall : very good stuff. If the price reaches the 4,200 level, then there will probably be another macro catalyst or news catalyst to persuade the market on which way to go from there. market moving events often happen at major support levels like
Giovanni Ayala :