S&P 500 Could Rally to 4,100

The 06/25/22 blog “Nasdaq Composite – MACD Indicator noted that the daily Nasdaq Composite (IXIC) had a bullish MACD  lines  crossover.  Today 06/27/22 the daily S&P 500 (SPX) – MACD also had a bullish lines crossover. This  increases  the chances for at least a short-term  US stock market rally.

The 5 – minute SPX500 – Point & Figure chart courtesy of Trading View illustrates  short – term support and resistance.

The SPX500 – Trading View symbol SPX500 shows action outside of the regular SPX trading hours and is  a good index to discover intraday support/resistance.

In aftermarket regular trading  SPX500  broke above short-term resistance then went into what appears to be a correction of the recent uptrend.

A  break below SPX500 – 3,890 could open the door for a move down to at least 3,820.  There’s moderate resistance at SPX500 – 4,020, stronger resistance is  at 4,100.

The daily SPX chart  illustrates  more  evidence.

In addition to the daily MACD bullish lines  crossover, the Histogram has  crossed above the “zero” line.

A  Fibonacci .382 retracement of the SPX January to June 2022 decline is  at 4,088 close  to the P&F cluster at 4,100.

The weekly SPX chart courtesy of BigCharts.com shows  additional bullish signals.

The weekly Slow Stochastic June 2022 bottom had a bullish divergence vs. the  May 2022 bottom. Additionally, the Slow Stochastic had a bullish lines  crossover.  Note that after the prior bullish lines crossover the SPX had a  two – week rally.

There’s a high probability the SPX could continue to rise  for at  least two – weeks into resistance near 4,100.

Published by Mark Rivest

Independent investment advisor, trader, and writer. Articles have appeared on Technical Analysis of Stocks and Commodities , Traders.com Advantage, Futuresmag.com, and Finance Magnates.

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