S&P 500: Will the Bullish Trend Continue After the Latest Pullback?

The S&P 500 recently experienced a pullback beginning on Wednesday 29 October, following a sharp rebound that came after the tariff scare on Friday 10 October. This price action has raised an important question: does this break of structure threaten the broader bullish trend, or will the S&P 500 continue its upward trajectory that has held since early April?

Technical Indicators Suggest Bullish Momentum May Hold

Several signals point towards continued strength:

• The index has crossed back above the 100-day moving average, a key indicator of long-term support and bullish bias.
• Previous market behaviour following similar pullbacks shows that the S&P 500 has historically recovered well, reinforcing the idea of trend continuation.
• As a self-correcting index, weaker companies fall out while stronger ones remain, helping to maintain long-term resilience.

These factors suggest the S&P 500 may still have room to climb if bullish conditions persist.

But Market Uncertainty Remains

Despite positive indicators, some signs call for caution:

• The RSI is currently neutral at 56, showing neither overbought nor oversold conditions.
• The MACD appears volatile, pointing to mixed momentum signals.
• Recent trading volume has been low, often a sign that investors are hesitant to commit strongly in either direction.

These conditions indicate potential indecision in the market, meaning future gains may not be as aggressive as those seen earlier in the year.

Outlook for Traders and Investors

With recent price gains beginning to slow, the S&P 500 may either enter consolidation or possibly shift direction. For investors looking to avoid tying up capital during a period of uncertainty, it may be wise to wait for clearer confirmation before entering new positions.