S&P 500 Analysis: Key Support and Resistance Levels Amid Earnings Week

This week, investors will be watching the S&P 500 closely around the lower rising trendline support within its current channel, a critical level for potential market moves. Following the first red week since early September, the S&P 500 found support around 5,762 and has since inched higher, now trading around 5,834, with a 0.4% increase on the day. With major earnings announcements, including Alphabet’s report tomorrow, markets are bracing for potential impacts on the index.

Critical Levels to Watch: Support and Resistance

Trendline support currently lies near 5,809. A drop below this level could shift the focus back to 5,762 for a possible retest. If the index breaks below 5,762, it could trigger panic selling, pushing traders to look at the 5,670-5,700 range for additional support in the short term.

On the upside, the S&P 500 faces resistance at 5,864, a level tested last Friday before closing lower by -0.14%. A breakout above 5,864 may bring renewed buying interest, potentially leading to a retest of the all-time high of 5,882.

Market Momentum and MACD Indicator

The MACD indicator recently turned bearish, suggesting fading momentum and possible profit-taking as investors proceed with caution. With increased volatility likely until after the election, MACD is expected to remain flat, signaling sideways movement amid broader market uncertainty.