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Technical Analysis of the S&P 500 Index – Technology Vision and Expected Scenarios:
Judging from the daily chart, the index showed a positive trend after rebounding above 6,214 points, and rose again above 6,542 points, approaching a retest of the highest level of about 7,000 points; this was against the backdrop of market optimism and attempts to reach an agreement on the Iran war.
Additionally, several technical indicators have also supported this buying momentum so far. When we see the Relative Strength Index (RSI) curve penetrate and stabilize above the 50 level, we note that the price is positively intersecting with the stability above the moving averages (20-day and 50-day).
Based on this, here are the possible scenarios:
Positive scenario:
A breakout and hold above 7,000 and a positive crossover with the moving averages could open the door to new all-time levels around 7,100 as an initial target, and possibly higher.
Casual scene:
The price failed to break or hold above the 7,000 level, which could lead to a consolidation move below this level.
Negative scenario:
Another decline and hold below the 6,542 level could signal further declines and a re-targeting of the 6,317 or even 6,214 levels.
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