Chartbook: U.S. Chart S&P 500: Room to extend corrective pullback
Break above the December 2024 year high at 6100 saw rally to reach fresh record high before meeting strong selling pressure at the 6147 high
Break above the December 2024 year high at 6100 saw rally to reach fresh record high before meeting strong selling pressure at the 6147 high.
Pullback through the 5800 level and 5670 support has seen sharp dive to unwind the overbought daily and weekly studies before stabilising at the 5505 low. Bounce here seen corrective and lower high sought for retest the latter and where break will see room for deeper correction of the bullish gains from the October 2022 year low to the 5400 congestion then 5265, high of March 2024. Lower still, will see deeper pullback within the bullish channel from the March 2020 year low to the 5120/5000 area. Below these will see room to 4800, channel support.
Bounce from the 5505 low see prices unwinding oversold daily studies but gains expected to give way to selling pressure later. Resistance is lowered to the 5773 low of January which extend to the 5900 congestion. This area is expected to cap and sustain losses from the 6100/6147 highs. Clearance, but not expected, will see scope to the upper channel at 6400/6450 area.