After chalking up a fifth consecutive month in the green (July +3.1%), aided by the Relative Strength Index (RSI) on the monthly timeframe rebounding from support between 40.00 and 50.00 (common in strong uptrends), the S&P 500 is fast approaching the all-time high at 4,818 set at the beginning of 2022.
Price action on the weekly timeframe recently connected with resistance at 4,595 and channel resistance drawn from the high of 4,100 and closed out the week snapping a three-week-bullish phase. Despite ending the week down -2.3% (its largest one-week decline since March), the index is unlikely to print much follow-through selling, given room seen to move higher on the monthly chart and current daily support (see below). Should we break north of the current weekly resistance, resistance calls for attention at 4,743, followed by the all-time high, while extending the recent correction swings the technical pendulum toward support at 4,325.
Across the page on the daily timeframe, support at 4,473 is likely to welcome price action this week, which is set north of the 50-day simple moving average at 4,406 (current). The support level and the monthly timeframe boasting space to move higher could attract dip-buyers into this market, targeting daily resistance from 4,578, closely shadowed by the weekly resistance highlighted above at 4,595. Ultimately, though, medium-term longs in this market will be looking for the unit to dethrone the weekly resistance and refresh YTD highs.
Price action on the weekly timeframe recently connected with resistance at 4,595 and channel resistance drawn from the high of 4,100 and closed out the week snapping a three-week-bullish phase. Despite ending the week down -2.3% (its largest one-week decline since March), the index is unlikely to print much follow-through selling, given room seen to move higher on the monthly chart and current daily support (see below). Should we break north of the current weekly resistance, resistance calls for attention at 4,743, followed by the all-time high, while extending the recent correction swings the technical pendulum toward support at 4,325.
Across the page on the daily timeframe, support at 4,473 is likely to welcome price action this week, which is set north of the 50-day simple moving average at 4,406 (current). The support level and the monthly timeframe boasting space to move higher could attract dip-buyers into this market, targeting daily resistance from 4,578, closely shadowed by the weekly resistance highlighted above at 4,595. Ultimately, though, medium-term longs in this market will be looking for the unit to dethrone the weekly resistance and refresh YTD highs.