A new page about S&P 500 breakout analysis with technical candlestick chart. We are dedicated to providing you with the latest and most comprehensive breakout analysis of the SPX index, based on its daily, weekly, and monthly performance.
Looking at the weekly chart of price action movement from October 2022 shows a zig-zag pattern of an upward trend. One important observation is that the price never breaks below the previous major higher low, which acts as a strong support level.
The S&P 500 index has confirmed a bull run by breaking out of the flag pattern in November of the last year and continuing to rise. The stock has made significant progress since the breakout, achieving higher levels and sustaining a bullish trend.
S&P 500 Breakout Analysis
In the last published breakout analysis, we had written that the target of 4050 would be touched but it was missed by 50 points. It completed the journey from 4330 – to 4100. On the other hand, a resistance level of 4600 was mentioned. After crossing it, there was an upward move of 200 points.
Currently, the SPX index is like a hot air balloon, floating near its highest all-time-high 4818 level.
According to the range calculation, if it can close above this lofty level, it can soar even higher by another 200 points. If it has to face a dark cloud here, it has a dependable support of the 4600 level to keep it from crashing. Weekly timeframe image below,
Analysis published date: 19 January 2023, Friday.
September 2023 published Analysis
Weekly timeframe: the rising channel pattern, as you see in the image, started forming about a year ago. The index faced resistance at the crucial level of 4600 last month. Coincidentally, that was the touch of the upper line of the technical pattern.
At the moment, the price is going to touch the lower line around 4250. If that line is broken in the near future, the price may move to the next main weekly line around 4050.
About S&P 500 Index
66 years longstanding, the S&P 500 is one of the popular indexes on the New York Stock Exchange (NYSE) and the Nasdaq Stock Exchange. There is no intention to bore you by writing the complete history of this.
In other words, it is a snapshot of the overall economy of America. A company is included in the list only if it meets certain selected standards.
There are 500 large companies that are included in this real-time index and all the related companies are frontrunners in their respective fields. Many times, traders make further strategies by looking at it. This definitely gives an indication of the time to come in the economy.
Companies related to Information Technology and Healthcare sector have more weightage. Apple, Microsoft, Amazon, Nvidia, and Alphabet are all prominent in that.
If you want to trade the S&P 500 index directly, you cannot do it. You can trade it through ETF products. Due to good liquidity and low volatility, many people call it a safe haven.