{"id":6772,"date":"2024-11-22T09:37:21","date_gmt":"2024-11-22T09:37:21","guid":{"rendered":"https:\/\/alchemymarkets.com\/?post_type=market_insights&p=6772"},"modified":"2025-05-13T06:59:34","modified_gmt":"2025-05-13T06:59:34","slug":"sp500-nov-2024","status":"publish","type":"market_insights","link":"https:\/\/alchemymarkets.com\/sv\/education\/market-insights\/chart-of-the-day\/sp500-nov-2024\/","title":{"rendered":"Can S&P 500 Continue Higher in its Broadening Wedge Pattern?"},"content":{"rendered":"\n

The S&P 500 has recently seen a significant surge due to Nvidia\u2019s better-than-expected earnings report, surprising the markets and pushing the index higher by 0.50% on Thursday.<\/p>\n\n\n\n

With this positive earnings report, can S&P 500 continue higher after tapping the long talked about $6,000 price level?<\/p>\n\n\n\n

Broader View Shows the S&P 500 In a Broadening Wedge<\/h2>\n\n\n\n
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Despite the bullish year that 2024 has been for the S&P 500, the weekly chart shows a developing broadening wedge starting from April.<\/p>\n\n\n\n

This highlights a possibility that S&P 500 could be temporarily topped out. If this is the case, then a retracement to the Weekly EMA 20 or EMA 50 is possible.<\/p>\n\n\n\n

Lending more credibility to the broadening wedge idea, the Weekly Stochastic RSI is also signalling a bearish divergence \u2013 which is a sign of weakening bullish momentum.<\/p>\n\n\n\n

Alternative View: <\/strong>The S&P 500 is in a rising wedge pattern<\/a>, also a bearish reversal pattern.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Does the S&P 500 have technical reasons to drop lower?<\/h2>\n\n\n\n
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Going down to the daily timeframe, we can see a significant Bearish Fibonacci Retracement<\/a> come into play. The 61.8% Fibonacci retracement is placed at $5,951.6, and is a major resistance level.<\/p>\n\n\n\n

If the daily price is unable to close above this Golden Fibonacci retracement level, <\/strong>or closes above it then immediately loses it \u2013 it could spell some temporary downside for the index.<\/p>\n\n\n\n

However, this is by no means calling for a major top on the S&P 500, as the index has several key support levels to break before traders begin to consider a prolonged downtrend:<\/p>\n\n\n\n