S&P 500 Rally Sputters With Index Near Key Technical Levels
- Benchmark equities gauge hits barrier after November’s 7% jump
- Next major level of technical resistance for S&P sits at 4,500
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Coming off a three-month losing streak, US stocks have powered to a 7.3% gain in November, the biggest jump in over a year. While macro factors like cooling inflation, along with bearish positioning, helped fuel the rally, investors are also scouring charts for clues on whether the advance can persist.
One is the S&P 500 Index’s 14-day relative strength index, which is nearing the 70 level that some technicians view as a sign of overheating. Just three weeks ago, the RSI fell below 30, a reading that often portends rallies. Such a rapid about-face, from oversold to overbought within one month, is rare. But it historically bodes well for equity gains in the near term.