All it took was three weeks of nonstop rallying, and the index has set new all-time highs. At the time of writing, it was above 4,450 USD, up 0.35% on the day.
Remember a month ago, when indices were sliding, how suddenly everyone was panicking and talking about a significant correction? As always, they were wrong, and equities staged an impressive recovery, confirming the long-term uptrend.
The index needs to settle above the 4,550 USD level and ideally make a daily close significantly above it to make a nice breakout. In that case, the next target will likely be at 4,600 USD, while the psychological level of 5,000 USD is getting closer and closer.
On the other hand, the important support could be found in the 4,485 USD area, where previous highs are located. Another demand zone is expected at the 50-day moving average near 4,445 USD.
As long as the index trades above those two supports, the medium-term outlook seems bullish. The short-term trend also seems bullish as long as it stays above 4,440 USD.
SP500 daily chart 3:00 PM CET