However, bulls recently broke out of this range to make a new high at 6050.88. If the bullish trend is shallow, the price might drop to retest the recently broken range resistance before climbing higher. A break above 6050.88 would confirm a continuation of the bullish trend.
However, the price currently trades below the 22-SMA, with the RSI in bearish territory. If bears are ready to take charge, the S&P 500 price will continue dropping beyond the 5900.12 level to retest the 5745.91 support.
Key Support Levels
Support 1: 5900.12, a recent 4-hour resistance turned support
Support 2: 5745.91, a 4-hour swing low
Key Resistance Levels
Resistance 1: 6050.88, the recent 4-hour swing high
Final Thoughts
Market participants are still absorbing the recent change in US politics that could mean higher US inflation. At the same time, economic reports from the US continue shaping the outlook for the Fed’s December meeting. The retail sales report will increase market volatility if it comes above or below estimates.
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