S&P 500: Be cautious at the 4,200 level

 


The S&P 500 broke above its key resistance level at 4,115 this week as both the CPI and PPI continue to fall. The index may be heading higher to retest the trendline resistance at ~ 4,200 but be cautious that the S&P 500 has been trying to break above this trendline resistance before, in December 2022 and February 2023, but without success. Besides that, the hedge funds' net short position in S&P 500 futures contracts is now at the second-highest level since October 2015, per Institutional Investor. The bulls should not give up, though, as the old saying goes, "third time's a charm."

This note contained herein is not and should not be construed as a recommendation to buy or sell. Click here to view the latest update!

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