S&P 500 – Hidden Resistance

The S&P 500 (SPX) could soon reach a resistance zone that may be unknown to most traders.

The SPX recently exceeded a Fibonacci .618 retracement of its March to April decline.  Many times, a break of the .618 retracement level implies a 100% retrace of the prior movement.  In this case it’s to the SPX late March peak.

The hourly SPX chart courtesy of Trading View shows another potential resistance zone.

The “Volume Profile” method places market volume on a vertical axis that matches volume with price levels.   The wide volume areas tend to act as support/resistance.   The widest part of the profile is called “Point of Control” (POC) which represents the strongest area of support/resistance.   The current SPX – POC is at 5,208 in the area of the 04/11/24 peak.

Note that the hourly – Stochastic has a bullish line cross in the neutral zone and could reach the overbought zone on 05/09/24.

If the SPX reaches the area of 5,208 with hourly Stochastic in the overbought zone it could indicate an important peak.