The S&P 500 index is currently trading around 5,940, marking an impressive year-to-date gain of approximately 24%. Investors are closely watching for a potential rally as market sentiment shifts with an anticipated Trump administration policy update and forthcoming guidance from the Federal Reserve. The S&P 500 recently broke past its previous resistance level of 5,872, suggesting that the next psychological resistance could emerge around 6,000.

With the Federal Reserve’s policy statement due later today and Nvidia’s earnings report on the horizon, these key market events may drive additional volatility and set the tone for short-term trends. If profit-taking occurs, the previous resistance of 5,872 is likely to serve as support, cushioning any short-term declines. However, a drop below this support level could signal further retracement, potentially pulling the index towards its trendline support in the 5,700-5,750 range—a decline of around 3.5-4% from the current level.

On the upside, a strong break above the 6,000 mark could push the S&P 500 towards its next psychological resistance range of 6,100-6,200.

Technical Indicators Show Bullish Momentum

From a technical perspective, bullish signals are strengthening. The MACD (Moving Average Convergence Divergence) has turned positive, reinforcing a bullish outlook. Meanwhile, the RSI (Relative Strength Index) is at 65, indicating room for further upward movement without yet signaling overbought conditions on the daily chart.

As the market awaits updates from the Federal Reserve and Nvidia’s earnings, traders should watch these key levels closely. Breaking above 6,000 could open up new highs, while any retreat below 5,872 might see the S&P 500 index testing its lower trendline support.