Mapping the Market: S&P 500 may be ready to break out after quiet period
SPY•What the chart shows
- Amid recent sideways price action, Bollinger Bandwidth compressed to its lowest level since June 2021
- Support at 7,664; next zone at 7,620-7,577 then the rising 100-day moving average just below 7,500
- Resistance at 7,756-7,771; record highs in the 7,798-7,817 area; 8,000 potentially in play on the upside
Key support and resistance levels
Late in Wednesday's session, the S&P 500 was near 7,650, putting it slightly below 7,664, a level defined by a weekly Gann line — a charting tool traders use to identify potential turning points. The next significant support zone lies between 7,620 and 7,577.
Conversely, upside resistance appears near 7,756 to 7,771, with the psychologically notable 8,000 mark in striking distance if the index breaks to fresh highs.
Catalysts that could drive the next move
The question now is which way the market will move. Several catalysts are occupying the market's attention: rising crude oil prices, tensions in the Middle East, the upcoming report this week on consumer price inflation, and next week's Federal Reserve meeting. Each could provide the spark needed to push the index out of its recent trading range and determine whether this quiet consolidation ends with an upward or downward move.
S&P 500 consolidates as volatility compresses
Sept. 10 (Reuters) - After a relatively sleepy stretch for the S&P 500 in August, technical indicators suggest the benchmark U.S. stock index could be approaching a significant move — though the direction it may take remains unclear.
Over the past three weeks, the index has traded sideways with minimal volatility — a phenomenon known as consolidation. A technical tool called Bollinger Bandwidth, which measures price volatility, recently compressed to its lowest level since June 2021. This happens when a market is catching its breath between moves.
