Market Breakout Contemplation
Just as the S&P 500 crosses the threshold of a major breakout, investors are poised on the edge of their seats. The recent surge that has propelled the index to new heights has been nothing short of impressive. However, as the dust settles, it is becoming evident that the ascent is about to encounter strong headwinds.
Technical Hurdles Ahead
Approaching the 4920 level, the S&P 500 is merely 20 points away from a formidable barrier – the 161% Golden Fibonacci extension. This crucial juncture underscores the equal leg move of the market’s lows and highs. Furthermore, the RSI indicator is showing a significant divergence, a telling sign that the market might be at a turning point.
Moreover, the ES contracts are edging close to 4967, which presents the same extension and emphasizes the magnitude of the impending resistance. Should the market stall around the 4900 level and subsequently breach the 4800 mark, it could signify the establishment of a near-term, if not long-term, peak in the broader markets.
