Watch These S&P 500 Ranges After Index Hits 6,000 Factors For First Time Since February

The S&P 500 (SPX) surpassed the 6,000-point mark final week for the primary time since February, extending a rally for shares that is been fueled by optimism about sturdy company earnings and financial information, as buyers await additional developments on the commerce entrance.

The benchmark index has rallied sharply from its early-April low to commerce simply 2.4% beneath the document excessive it established in mid-February. Final month, the S&P 500 posted its largest month-to-month achieve since November 2023, as issues in regards to the Trump administration’s “Liberation Day” tariffs have subsided.

Beneath, we take a more in-depth take a look at the S&P 500’s chart and apply technical evaluation to determine key ranges that buyers will seemingly be watching.

Pennant Sample Breakout

After climbing above a descending broadening formation, the S&P 500 trended sharply increased earlier than consolidating inside a pennant.

Extra not too long ago, the index broke out from the sample final week, indicating a continuation of its current transfer increased. In the meantime, the relative energy index confirms bullish momentum, however stays beneath its overbought threshold, offering ample room for additional upside.

Let’s determine two key overhead areas on the S&P 500’s chart and in addition find main assist ranges to look at throughout potential retracements.

Key Overhead Areas Price Monitoring

The primary key overhead space to trace sits round 6,100. This space could present resistance close to a trendline that connects a collection on peaks that shaped on the chart between December and February just under the index’s document excessive.

Traders can mission an upside goal above the document excessive by utilizing the bars sample software. When making use of the evaluation to the S&P 500’s chart, we extract the steep transfer increased following the breakout from the descending broadening formation and reposition it from the pennant’s breakout level. This tasks a goal of round 6,575, about 10% above Friday’s shut.

Main Assist Ranges to Watch

Throughout retracements, buyers ought to initially watch the 5,770 stage. The index may discover assist on this space close to the low of the pennant sample, which intently aligns with the 200-day shifting common (MA) and a spread of corresponding buying and selling exercise on the chart extending again to September final yr.

Lastly, an in depth beneath this stage may see the S&P 500 revisit decrease assist round 5,650. Those that put money into the index could search shopping for alternatives on this area close to the upward sloping 50-day MA and a horizontal line that hyperlinks a collection of worth motion on the chart between July and Could.

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As of the date this text was written, the writer doesn’t personal any of the above securities.