S&P 500: Bullish Breakout or False Move?

Chart Analysis:

The S&P 500 is at a critical juncture, trading just below a significant horizontal resistance level near 6,114.

1️⃣ Key Resistance Level:

The horizontal level at 6,114 represents a pivotal resistance, as prior attempts to breach this zone were met with selling pressure.
A successful breakout above this level could signal further upside potential and a continuation of the bullish trend.

2️⃣ Moving Averages:

50-day SMA (blue): Rising around 5,980, providing dynamic support and reflecting sustained upward momentum.
200-day SMA (red): Trending upward near 5,628, confirming the long-term bullish trend.

3️⃣ Momentum Indicators:

RSI: Hovering near 65, indicating strong bullish momentum but approaching overbought conditions.
MACD: Bullish momentum remains intact, with the MACD line rising and staying above the zero line.

What to Watch:

Traders should monitor for a confirmed breakout above 6,114 on increased volume to validate further upside potential.

Failure to break above this resistance could lead to a retracement toward the 50-day SMA or previous support levels.

Keep an eye on RSI for any bearish divergence or signs of momentum weakening.

The S&P 500 is at a make-or-break level, and its reaction at 6,114 will determine the next directional move.

-MW