Watch These S&P 500 Levels as Investors Assess 2025 Outlook | Global News Avenue

S&P 500 Index (SPX) heading into 2025, its best two-year performance since the late 1990s.

this large cap stocks The index rose 23% last year after surging 24% in 2023, as Artificial Intelligence (AI) An economic boom and the first interest rate cut since 2020 helped push stocks higher.

Although artificial intelligence narrative and Expected rate cut Large-cap stocks are likely to continue to be supported over the next 12 months, Investors will also pay close attention Impact of the incoming Trump administration policyespecially regarding tariffwhile also monitoring geopolitical tensions in Russia and the Middle East.

The S&P 500 ended 2024 with four straight sessions of losses, opening Thursday up 0.5% at 5,910.

Below, we take a closer look at a chart of the S&P 500 and find out the important technical Investors will likely keep an eye on this level as the first quarter begins.

Head and shoulders pattern appears

Since early November, the S&P 500 has formed a peak, a higher peak, and then a lower peak, forming a new peak. head and shoulders patterna classic chart pattern that indicates a potential market top.

Additionally, the index fell below the closely watched 50-day moving average Last week, although the latest sell-off occurred amid below-average year-end trading volume.

Let’s take a closer look at three major levels the S&P 500 could encounter support period callback And pointed out several key management areas that need to be monitored whether the index resumes its long-term upward trend.

Major support levels to watch

First, it is worth keeping an eye on the 5,875 level. This location on the chart could provide support near the head and shoulders neckline Join October peak Lows form in November and December.

a decisive break down A break below this area would confirm the head-and-shoulders top and could lead to a drop to the next lower support around 5,670. Investors trading the index may look for buying opportunities in this area around the famous month of July high swing and early October lows.

farther shortcoming This opens the door to a retest of the 5,445 level, which may attract support near the 5,445 level. trend line It links a series of similar chart points between June and September.

Key areas of overhead to monitor

If the S&P 500 resumes its long-term uptrend, investors should first focus on the 6,090 area. This level may provide overhead resist Close to the one-week limit merge The period formed shortly after an index reaches its peak All Time High (ATH) Early December.

Bullish forecast price target Above ATH, investors can use bar tools. The technique involves extracting the price bars that make up the post-election price assembly From early November to early December, it will be repositioned at the head, shoulders and neck line, with the forecast target around 6,290 points.

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