{"id":7400,"date":"2024-12-23T07:53:38","date_gmt":"2024-12-23T07:53:38","guid":{"rendered":"https:\/\/alchemymarkets.com\/?post_type=market_insights&p=7400"},"modified":"2025-05-12T12:45:23","modified_gmt":"2025-05-12T12:45:23","slug":"sp500-dec-2024","status":"publish","type":"market_insights","link":"https:\/\/alchemymarkets.com\/sv\/education\/market-insights\/chart-of-the-day\/sp500-dec-2024\/","title":{"rendered":"Make or Break: S&P 500 Continuation or Fall to $5,650 Possible"},"content":{"rendered":"\n

Following the Fed\u2019s hawkish FOMC meeting last Wednesday, the price of the US 500 index (S&P 500) took a slump of approximately -3.08% in just a single day, marking the largest bearish candle since November.<\/p>\n\n\n\n

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Amidst these bearish signals however, is a bounce off the $5,840 \u2013 $5,880 region with a daily hidden bullish divergence<\/strong>. This signals a possible continuation to the top of the wedge and even the possibility of creating a new All-Time High. However, the index must first get past key resistance zones and the 20-Daily <\/strong>Exponential Moving Average<\/strong><\/a> <\/strong>before rising to new highs.<\/p>\n\n\n\n

Technical Analysis Levels to Watch on S&P 500<\/h2>\n\n\n\n

Currently, the S&P 500 index has broken past its daily EMA-20, which has acted as a great dynamic, trending support. This is illustrated on our chart with a Bollinger Bands\u00ae<\/a> indicator with standard deviation set to one.<\/p>\n\n\n\n

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The recent plummet on Wednesday has officially created a trend shift, according to the Bollinger Bands (EMA-20), as it has completely broken down from the bands.<\/p>\n\n\n\n

This now makes the Previous High + EMA 20 zone<\/strong> the first resistance zone to watch, at approximately $5,984.00 to $6,015.30. If price cannot get above this area, S&P 500 may see a price decline back to its Pivot Area <\/strong>at $5,840 \u2013 $5,880, or even lower towards the 38.20% Fibonacci Retracement<\/strong><\/a> at $5,651.40.<\/p>\n\n\n\n

A plummet as such would invalidate the hidden bullish divergence signal, as a lower low would be formed.<\/p>\n\n\n\n

Conversely, if the price can get above the Previous High + EMA 20 zone<\/strong>, we can potentially see further rise into new highs, whereby the key resistance would be the current ATH<\/strong> of $6,099.70.<\/p>\n\n\n\n

The ultimate support level to watch would be the Pivot Area + 61.80% Fib + Wedge Low area <\/strong>at approximately $5328.30 to $5412.70.<\/p>\n\n\n\n

If broken, the S&P 500 could spiral towards $5,000 or even its 2022 ATH at $4,780 \u2013 however, this is a situation that is, for now, far from being realised.<\/p>\n\n\n\n

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Fed\u2019s Hawkish Shift Sparks USD\/JPY Rally Towards 160 \u2013 What\u2019s Next?<\/a><\/blockquote>