On the daily chart below for the S&P 500, we can
see that the price is again struggling hard at the key 4175 resistance. This level has been holding
since September 2022 and as soon as the price gets there, it gets rejected. The
sellers are likely to lean on this level again with a low risk in case the
price breaks above and a huge reward in case the market turns, and we get
another big bearish move.

Last Friday the buyers haven’t
even got any help from the economic data as retail
sales missed across the board and the 1
year inflation expectations in the University of Michigan survey showed a big
jump to the upside.

S&P 500 Technical Analysis

In the 4
hour chart below, we can see that the price has been diverging with the MACD rallying into the key
resistance. This should be a sign of a weakening momentum and it generally
leads to a pullback or reversal. The market may correct towards the trendline where the buyers are likely to
lean onto. This is also where they should find support from the daily red long
period moving
average.

In the 1
hour chart below, we can see how the spike above the key resistance was
immediately followed by a big reversal. There are strong sellers here that keep
defending this level. The first target for the sellers should be the support
zone at 4100.

The
buyers may need a bullish fundamental catalyst to gather enough momentum to
break above the resistance and start a rally towards the next resistance at
4300. Unfortunately, there’s no tier one economic data release until Thursday and
Friday when we will get the US Jobless Claims and the US PMIs.

This article was written by ForexLive at www.forexlive.com.