- The S&P 500 is trading 0.83% higher on the session on Thursday.
- There is a big resistance zone ahead and the market has lost momentum before the test.
S&P 500 4-hour chart
The S&P 500 is on a great run at the moment and the NFP data on Thursday sent the index higher to test 3,165.00. As you can see from the chart below the key level is the red horizontal resistance line at 3,167.50. Interestingly, despite how bullish the price action has been the momentum was lost before the price could get a chance to test the zone.
On the positive side, the price broke out of the black downward sloping trendline. This is a bullish signal and potentially it could mean the price will continue to move higher. Often when there is a trendline breakout the price does come back to retest the trendline before moving in the underlying direction of the trend break.
The technical indicators are looking bullish at the moment. The Relative Strength Index has pushed into the overbought territory above the 70 area. This could mean that there might be a small pullback which coincides with the trendline retest theory. The MACD is very positive as the signal lines have pushed above the mid-level and the histogram is gathering momentum in the green.
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Additional levels
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