S&P500 breaks out of a broadening wedge and retests 6780 support as government reopening odds fuel a relief bid.
Senate progress towards ending the record shutdown has lifted the overhang on data releases and growth, triggering a risk-on bounce across US indices. Price action confirmed a breakout with a clean throwback to 6780, aided by hidden bullish divergence on momentum before the surge to 6850.
Key drivers:
Government reopening: bipartisan Senate advance and White House support shift odds towards a near‑term resolution.
Technical confirmation: breakout from falling/broadening wedge, successful retest and RSI reset from overbought at 6850 towards midline supports continuation higher if 50 line holds.
Levels in play: support 6800–6775 and 6750; resistance 6850–6890 then 6930 with psychological 7000 on extension if momentum rebuilds.
Risk: reopening unleashes delayed macro data. A miss or policy hiccup could pull the price back toward the 50% area before the trend resumes and ahead of Nvidia earnings next week.
Bias stays long while above 6775: buy dips to 6750 with invalidation below 6725; If 6690 fails on a daily close, step aside and reassess.
Senate progress towards ending the record shutdown has lifted the overhang on data releases and growth, triggering a risk-on bounce across US indices. Price action confirmed a breakout with a clean throwback to 6780, aided by hidden bullish divergence on momentum before the surge to 6850.
Key drivers:
Government reopening: bipartisan Senate advance and White House support shift odds towards a near‑term resolution.
Technical confirmation: breakout from falling/broadening wedge, successful retest and RSI reset from overbought at 6850 towards midline supports continuation higher if 50 line holds.
Levels in play: support 6800–6775 and 6750; resistance 6850–6890 then 6930 with psychological 7000 on extension if momentum rebuilds.
Risk: reopening unleashes delayed macro data. A miss or policy hiccup could pull the price back toward the 50% area before the trend resumes and ahead of Nvidia earnings next week.
Bias stays long while above 6775: buy dips to 6750 with invalidation below 6725; If 6690 fails on a daily close, step aside and reassess.
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.