The S&P 500 chart is one to watch after yesterday's rise, as it runs into key resistance from the 200-day moving average (blue line) and key trendline resistance (white line) from the downtrend last year:
The two levels put together have been vital in rejecting the advance by equity bulls since August last year and it might be the case once again today.
For all the optimism in the risk rally that we have seen since late October and November, there is still no major technical breakthrough yet and it will require equity bulls to push through the levels noted above in order to vindicate any major turn in momentum for stocks.
Just be mindful of this chart as it will also feed into broader market sentiment, as we are seeing the dollar also firm slightly now across the board amid a retreat in equities.
