S&P 500 futures recently took a break after a strong 7% rise from October 27 to November 9. Despite achieving higher intraday highs for two days, the bulls couldn’t hold onto the gains, resulting in two consecutive red candles. However, the price remains above the 63-day Exponential Moving Average at approximately 4,359, and there are modest gains in premarket trading.
In this recent rally, the price surpassed important technical levels. After stabilizing near the yearly Volume Profile Point of Control at 4,157, it closed above key Exponential Moving Averages—the 252-day, 21-day, and 63-day—all currently trending upward. This suggests the bulls are controlling the overall price action.
Momentum is favoring the upside, as seen in the rally pushing the Relative Strength Index (RSI) above the crucial 50 midline that separates bearish and bullish momentum.
However, the broader price action paints a mixed picture. Although the price successfully broke a downward trendline connecting highs from September and October, it hasn’t exceeded the October highs near 4,430. Instead, it faces resistance near a volume node, a significant trading level according to the yearly Volume Profile study.
For the rally to persist, bulls need to surpass the October highs.
