SPX500_m bulls eye key resistance level

<p><strong>By <a href="http://investmacro.com/contributors/contributor-profile-forextime/">ForexTime</a> </strong></p>
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<ul>
<li>SPX500_m up 2% so far this week</li>
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<li>Incoming US data and Fed speeches could trigger volatility</li>
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<li>Prices firmly bullish on D1 timeframe but RSI overbought ​​​​​​​</li>
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<li>Key resistance level found at 4525 ​​​​​​​</li>
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<li>Possible breakout on horizon</li>
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<h3>The SPX500_m has gained 2% so far this week thanks to growing investor optimism around the era of Fed hikes coming to an end.</h3>
<p><img fetchpriority="high" decoding="async" class=" lazyloaded" src="https://www.forextime.com/s3-static/users/user17/SPX500_mH1.png" alt="" width="1000" height="800" data-entity-type="file" data-entity-uuid="70d8443d-7f1c-438d-81ca-f4d9d15865c2" data-src="/s3-static/users/user17/SPX500_mH1.png" /></p>
<p>The <strong>cooler-than-expected US CPI data</strong> on Tuesday boosted bets over the Fed done with raising rates. Yesterday’s <strong>soft PPI and retail sales report</strong> reinforced these expectations with traders currently <strong>pricing in a 25 basis-point rate cut by June 2024. </strong></p>
<h3><strong>We could see some more action on the SPX500_m today due to US economic data, speeches by Fed officials, and quarterly earnings from Walmart released before US markets open.</strong></h3>
<p>Taking a look at the technical picture, the SPX500_m could be in the process of <strong>another breakout or technical throwback.</strong> Prices have created a minor range on the H4 charts with the big resistance at 4525 and minor support at 4490.</p>
<p><img decoding="async" class=" lazyloaded" src="https://www.forextime.com/s3-static/users/user17/SPX500_mH4.png" alt="" width="1000" height="800" data-entity-type="file" data-entity-uuid="50f72869-e9a4-4aed-8b62-b39c5ef3fb1e" data-src="/s3-static/users/user17/SPX500_mH4.png" /></p>
<p>Looking at the daily timeframe, bulls have been on a roll over the past few days with the <strong>SPX500_m rallying over 7% since the start of November.</strong> However, bulls are currently eyeing a significant <strong>resistance level at 4525.</strong></p>
<p><img decoding="async" class=" lazyloaded" src="https://www.forextime.com/s3-static/users/user17/SPX500_mDaily_22.png" alt="" width="1000" height="800" data-entity-type="file" data-entity-uuid="33a4c6fb-fb12-4570-9682-a7f38ff7a7da" data-src="/s3-static/users/user17/SPX500_mDaily_22.png" /></p>
<p><em><strong>Note: the last time prices secured a daily close above this point was at the start of August 2023.</strong></em></p>
<p>There is a similar theme on the weekly charts with the powerful rebound at the start of November providing a foundation for bulls to test new highs. Beyond 4525, the <strong>next resistance can be found at 4600 – near the 2023 high.</strong></p>
<p><img loading="lazy" decoding="async" class=" lazyloaded" src="https://www.forextime.com/s3-static/users/user17/SPX500_mWeekly_1.png" alt="" width="1000" height="800" data-entity-type="file" data-entity-uuid="d2a32fb1-123a-47f7-af2d-3b92f4cbcb0a" data-src="/s3-static/users/user17/SPX500_mWeekly_1.png" /></p>
<p>Zooming out to the monthly, bulls seem to be regaining momentum with a solid monthly close back above 4600 opening the doors to the all-time high created at the start of 2022.</p>
<p><img loading="lazy" decoding="async" class=" lazyloaded" src="https://www.forextime.com/s3-static/users/user17/SPX500_mMonthly_1.png" alt="" width="1000" height="800" data-entity-type="file" data-entity-uuid="29a743b5-99fe-452b-ac77-0c55a622bc63" data-src="/s3-static/users/user17/SPX500_mMonthly_1.png" /></p>
<p>Placing our focus back on the daily timeframe, <strong>it’s all about the 4525 level.</strong></p>
<p>Prices are trading well above the 50, 100, and 200-day SMA however the <strong>Relative Strength Index (RSI) signals that prices are overbought.</strong></p>
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<h3>A strong daily close above 4525 could trigger a move towards 4600.</h3>
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<h3>Should prices remain trapped below 4525, prices may decline back towards 4470 and 4410 – where the 100-day SMA resides.</h3>
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<p><img loading="lazy" decoding="async" class=" lazyloaded" src="https://www.forextime.com/s3-static/users/user17/SPX500_mDaily2.png" alt="" width="1000" height="800" data-entity-type="file" data-entity-uuid="46005d7b-66bf-4629-8a0f-e3687070386f" data-src="/s3-static/users/user17/SPX500_mDaily2.png" /></p>
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