The index closed at its highest level in more than three weeks as price appears to break out of its recent consolidation range during several tests of the 50.0 Fib retracement level at 3,796 towards the end of December. Now, the break above the 100-day moving average (red line) puts buyers in a good position to extend bullish momentum.
There, S&P 500 futures are up 0.3% so far today, while the dollar also eases when looking at European trading. Markets continue to benefit from the fallout from Friday’s disappointing US ISM services report.
From a technical perspective, there is an opportunity for buyers to extend upward pressure to last year’s 200-day moving average (blue line) and key trendline resistance (white line).
This region will remain the main resistance layer to limit further upside potential in the bigger picture.
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