S&P 500 still searching for a breakout
SPY•The S&P 500 closed Friday at 7,743.41, down 0.7% from its August 13 record close, after moving sideways for 30 trading days. E-mini S&P 500 futures were down about 0.4% ahead of Monday’s open.
1. Index remains rangebound
The S&P 500 snapped a two-week losing streak Friday but has made little progress since its August 13 record close. Its deepest pullback was 3.7% into the September 16 low, compared with a 5.3% drop after the previous record close on June 2.
2. Volatility and levels
Daily Bollinger Bandwidth fell to its lowest level since June 2021 on August 31 and has since started to expand. Initial support is at 7,662.57, followed by the 7,640 area; further levels are near 7,550 and 7,507.77. Resistance is at 7,782.19 and then the record highs, with 8,000 identified as the next major target if the index breaks out.
