The strong rally in US stocks on 10/21/22 added evidence that the bulls have momentum. However, an important resistance level needs to be exceeded for the uptrend to continue.
The daily S&P 500 (SPX) chart courtesy of Trading View updates the action.
Daily SPX – RSI has now crossed above the 50% level usually this is bullish and in this case implies at least several more trading days of upside action.
MACD lines are rising, again implying at least a short-term rally.
On the bearish side of the coin, SPX is near a powerful resistance zone.
There’s chart resistance at SPX 3,806.91 – this is the 10/05/22 peak. Also, a 100% retracement from the 10/13/22 bottom – a Fibonacci ratio of 1/1.
A Fibonacci .236 retracement of the decline from 01/04/22 to 10/13/22 is at 3,804.76.
A Fibonacci .382 retracement of the decline from the 08/16/22 top at 4325.28 to 10/13/22 is 3,810.05.
Three Fibonacci points very close together represents a potentially powerful resistance zone. Such resistance usually requires powerful force to break through. We could find out if this resistance can be broken in the next one or two trading days.
Four Dimension Trading 