DJI
NDX
SPX
Equities have rallied in June 2022. However, here in the S&P500 chart we can see a patter that is true for all 3 equity indexes. All three indexes (DOW, SP500, NASDAQ) are at a technical resistance level. This means that it is at a price level that it previously attempted, but was unable to cross above.
Let's consider that the price action AND RSI oscillator have been making prominent and consistent higher low and higher high which show that the current bull run is STRONG and backed by a bullish market structure. Now that the bullish market structure has carried the price all the way to technical resistance what will happen next? I see three possibilities (1=least likely, 3=most likely)
#1. Backed by this strong bullish market structure, the price will close above technical resistance and form a new support level from that previous resistance level. This will also single a continuation to further growth in the markets and a possible end to this bear market.
#2. Resistance level will stay the same, price will go down but still form a higher low. Price then rallies back up to the resistance level and proceeds the same as #1.
#3. Resistance level will stay the same, price will go down all the way to the support level or even lower. Signaling a continued bear market.
I will most definitely be on the lookout for how this level gets resolved.