At the time of this writing, the Federal Reserve had cut interest rates by half a point just a couple of hours ago. As usual, the market whipped higher and lower before settling lower on the session. But aside from that day’s activity, the S&P 500 has been on quite the move higher since last November. And if it can break some current resistance, it may continue to thrive.

Positive Attitude

Take a look at this daily chart of the SPX from around November 2023 to present.

As you can see, the index has continued to move higher from the beginning of November. Now don’t get me wrong, there have been more than a few pullbacks within those months, but the market has rallied back every time. In addition, it has come back almost as quickly as it dropped, which is a very bullish sign. Overall, the market has had a positive attitude. On bad news it has to pull back, but on neutral or good news, it continues to move higher more times than not.

Current Resistance

As you can see above and even better on the hourly chart below, the current resistance level on the SPX is about 5,653.

It has tried several times over the past few weeks to break that resistance level and has failed. If it does break that level, the market may continue to move higher for several more weeks, most likely several pullbacks in between. As a trader or investor, you should keep an eye on that resistance level as a bullish line in the sand, so to speak. Who doesn’t want to be on the right side of the market? It usually helps!

Final Words

Who knows where the market will go for the rest of 2024? But from a technical standpoint, a break through the current resistance level will favor a continued move higher.

John Kmiecik, Market Taker Mentoring