S&P 500 Shows Bullish Strength with Decisive Support Bounce

By Tomasz Wisniewski|

Published: July 03 2024, 05:44 GMT+0

S&P 500 Shows Bullish Strength with Decisive Support Bounce

In today’s technical analysis, I would like to highlight the impressive performance of the S&P 500. Yesterday, the index experienced a robust surge, thanks to a decisive bounce off a key horizontal support at 5450 points, marked by the lower blue line. This level had previously acted as resistance in mid-June, late June, and early July. The bounce is a classic retest of broken resistance now serving as support.

Currently, the S&P 500 is taking a breather after yesterday’s gains but appears poised to challenge the horizontal resistance marked by the upper blue line. This pattern resembles a staircase, with sideways trends followed by breakouts to the upside, as indicated by the yellow rectangles on the left side of the chart. Given this momentum, a breakout above the upper blue line seems likely, reinforcing the bullish sentiment.

Moreover, the current short-term correction is quite flat, indicating that buyers maintain full control of the situation. The consistent upward movement suggests that the bullish trend will likely continue, making the S&P 500 a strong contender for further gains in the near future.

Source: https://www.axiory.com/analytics/technical-analysis/s-p-500-shows-bullish-strength-with-decisive-suppo