However, recently the bulls broke out of this range and reached a new high at 6050.88. If the bullish trend is shallow, the price could drop to retest the recently broken range resistance before climbing higher. A break above 6050.88 would confirm a continuation of the bullish trend.
However, the price is currently trading below the 22-SMA with the RSI in bearish territory. If the bears are ready to take control, the S&P 500 price will continue to decline above the 5900.12 level to retest the 5745.91 support.
Main support levels
Support 1: 5900.12, a recent four-hour resistance turned into support
Support 2: 5745.91, a four-hour swing low
Main resistance levels
Resistor 1: 6050.88, the recent four-hour swing high
Final thoughts
Market participants are still absorbing the recent change in US politics, which could mean higher US inflation. At the same time, US economic reports continue to shape the outlook for the December Fed meeting. The retail sales report will increase market volatility if it comes in above or below estimates.
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