The leading US index is bullish again with the moving averages signaling a golden cross.
This comes after more than three months since the last death cross. However, price action continues to be choppy. The S&P500 is confined within 3000 and 3200 since establishing this range a month ago.
Given the current bullish momentum, the index is likely to retest the 3200 level in the near term.
A strong breakout above 3200 could potentially see the S&P500 rising above this level and challenging the previous all-time highs near 3400. This bias will be further confirmed if prices dip back to establish support at the 3200 level.
To the downside, if the S&P500 fails to breakout, then we expect prices to drift sideways within the range. A minor support is seen at the 3130 level which might hold the price from declining further.