Review
At yesterday’s close at around 3946 points, the S&P500 index closed with a slight gain. Today, the index has so far moved only slightly further up with 0.10%. In the long-term downtrend, the price last marked a high at around 3969 points. After the rise due to the positive inflation data from the U.S. from last week now seems to come a weakening of the upward movement. The price reached its last high at around 4030 points last Tuesday. What might happen next week?
Outlook
For the time being, the chart situation in the daily chart has not changed much over the week. In the area around 3910 points, a short-term relevant horizontal support has been established. The next important resistance is found in the area of 4030 points at the last high. If the price continues to stay above the support and respects it, this can be interpreted as a bullish signal. However, if this is breached, we could see a downward movement towards 3860 points, where another support is located. Otherwise, the price could rise to the aforementioned resistance. Above the resistance area at approx. 4100 points, the 200-day moving average and the long-term downtrend line since December 2021 can still be found, which could act as further resistances in case of a continuing recovery movement. If the price continues to rise after all, a sideways or downward movement could set in there as well for the time being.
In addition, there is still the possibility of a sideways movement in the current price level at around 3950-4000 points.
