The S&P 500 finished -1.8% lower in August, trimming a share of the previous five-month bullish phase.
As evident from the monthly timeframe, though, while the US equity index did indeed settle lower, it ended considerably off worst levels and closed near the upper end of the prior month’s range. As a result, technically speaking, buyers remain in the driving seat. The all-time high at 4,818 (set at the beginning of 2022) remains a logical target on the monthly scale, in a market trending higher since early 2009 (aided by the Relative Strength Index rebounding from support between 40.00 and 50.00).
Stepping down to the weekly timeframe, the unit came within a stone’s throw of a support area between 4,300 and 4,325 that I highlighted in previous work, before staging a solid rebound in the second half of August. Resistance at 4,595 will likely be on the radar for many traders and investors this week, considering the ceiling it delivered at the end of July. Though having seen limited resistance on the monthly chart, a breakout north of 4,595 could be on the table in the coming weeks, a move unearthing another weekly resistance at 4,743, sheltered just under the all-time high noted above.
Sliding across to the daily chart, we can see that last week manoeuvred above the 50-day simple moving average at 4,469 and resistance priced at 4,473 (now marked as support). With last week shaking out any remaining sellers at the aforementioned levels, the runway appears clear for an approach to resistance at 4,578 this week, which happens to reside south of the weekly resistance level at 4,595.
As evident from the monthly timeframe, though, while the US equity index did indeed settle lower, it ended considerably off worst levels and closed near the upper end of the prior month’s range. As a result, technically speaking, buyers remain in the driving seat. The all-time high at 4,818 (set at the beginning of 2022) remains a logical target on the monthly scale, in a market trending higher since early 2009 (aided by the Relative Strength Index rebounding from support between 40.00 and 50.00).
Stepping down to the weekly timeframe, the unit came within a stone’s throw of a support area between 4,300 and 4,325 that I highlighted in previous work, before staging a solid rebound in the second half of August. Resistance at 4,595 will likely be on the radar for many traders and investors this week, considering the ceiling it delivered at the end of July. Though having seen limited resistance on the monthly chart, a breakout north of 4,595 could be on the table in the coming weeks, a move unearthing another weekly resistance at 4,743, sheltered just under the all-time high noted above.
Sliding across to the daily chart, we can see that last week manoeuvred above the 50-day simple moving average at 4,469 and resistance priced at 4,473 (now marked as support). With last week shaking out any remaining sellers at the aforementioned levels, the runway appears clear for an approach to resistance at 4,578 this week, which happens to reside south of the weekly resistance level at 4,595.