S&P 500 Levels to Watch After Index Posts Record Close, Best Month of 2024 | Global News Avenue

S&P 500 Index (SPX)release Set a new closing high U.S. stocks ended their best month of the year on Friday as they extended their post-election rally.

The index rose 5.73% in November to close at 6,032 points, driven by optimism about President-elect Donald Trump’s pro-business policies. policy A Republican majority in Congress would boost economic growth and boost corporate profits.

However, investors remain cautious tariff The incoming Trump administration is likely to implement the policy, which economists say could reignite inflation and slow economic growth. Fed cuts interest rates.

Below, we’ve analyzed the technicals on the S&P 500 chart and identified important levels that investors may be concerned about.

Buying momentum slows

Since mid-July, the S&P 500 has rising wedgea chart pattern that appears as an upward sloping price channel with two converging trend lines.

Recently, the index has been tracking the pattern’s upper trendline, but it’s worth pointing out that the recent strength has occurred on the downside. roll This resulted in a shortened Thanksgiving holiday trading week.

Additionally, as the index hit a record high on Friday, Relative Strength Index (RSI) Created relatively lower highs to form a bearish disagreementa chart signal that buying momentum is slowing.

Let’s identify the key support level Something to watch on the S&P 500 chart callback and also use technical analysis A cautious bullish target is projected to monitor whether the index continues to move higher.

Key support levels worth paying attention to

After the initial pullback, investors should keep a close eye on 5,870, which is currently slightly above the uptrend line. 50-day moving average. This area on the chart is found confluence Support from October peakthe mid-November trough and the lower trendline of the rising wedge pattern.

A close below this important technical level could push the index down to around 5,670, where the S&P 500 could trade near a multi-month trendline connecting a series of similar levels on the July-October chart Encounter support.

Measuring Bullish Targets for Moving

To predict bullish chart-based targets, investors can use measured moves, also known as Measurement principle.

This technique works by calculating the depth around the widest point of the rising wedge and adding that depth to the pattern’s upper trendline. For example, we add 600 points to 6,075 and project a target of 6,675, an area that is approximately 11% above Friday’s closing price and where the index could see gains. resistespecially when other lights are flashing overbought conditions are met at the same time.

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As of the date of this writing, the author did not own any of the securities mentioned.