The S&P 500 (SPX) closed at a 澳洲幸运5官方开奖结果体彩网:record high Friday after briefl🍃y crossing the 6K level for the first time, as stocks have rallied following the U.S. presidential election.

Investors have bid up stocks on expectations for an increasingly business-fr🐎iendly White House and Con👍gress following Donald Trump’s decisive victory in last week’s election. 

Sentiment also received a boost after the Federal Reserve on Thursday 澳洲幸运5官方开奖结果体彩网:reduced its benchmark lending rate by a quarter percentage point to a range of 4.5% to 4.75%ꦫ, its lowest since February 2023. Through Friday’s close, the S&P 500 has gained around 25% this year. 

Below, we break down the 澳洲幸运5官方开奖结果体彩网:technicals ෴on the index's chart and point out price levels that investors may be watching.

Rising Wedge Breakout

Since forming a peak in mid-July, the S&P 500 traded within a 澳洲幸运5官方开奖结果体彩网:rising wedge before breaking out above the pattern on Wednesday following🍒 the presidential election outcome, settꦜing the stage for further potential gains in the week ahead.

Importantly, above-average volumes have supported the move higher, indicating buying conviction from larger market participants, such as 澳洲幸运5官方开奖结果体彩网:institutional investors and asset managers.

Moreover, the 澳洲幸运5官方开奖结果体彩网:relative strength index (RSI) confirms bullish price momentum with a reading nearing 70, but also cautions the potential for short-term 澳洲幸运5官方开奖结果体彩网:profit taking as the indicator approaches 澳洲幸运5官方开奖结果体彩网:overbought levels.

Given the index has moved into 澳洲幸运5官方开奖结果体彩网:price discovery mode, let’s look at a chart-based upside 澳洲幸运5官方开奖结果体彩网:price target and also point out key 澳洲幸运5官方开奖结果体彩网:support levels to watch during pullbacks.

Measured Move Upside Price Target

Investors can forecast a price target using the measured move technique, also know as the 澳洲幸运5官方开奖结果体彩网:measuring principle. This works be calculating the distance between the rising wedge pattern's two trendlines near their widest point and adding that amount to the initial breakout area. For instance, we add 600 to 5,900, which projects an upside target of 6,500꧟.

Interestingly, this bullish target also roughly corresponds to a bars pattern price target that extracts the S&P 500’s trending move higher from April to July and repositions it from this month’s low near the rising wedge pattern’s lower trendline and 澳洲幸运5官方开奖结果体彩网:50-day moving average.

Important Support Levels to Watch

Upon an initial 澳洲幸运5官方开奖结果体彩网:retracement, investors should watch how the index responds to the 5,900 level, a location on the chart t🐲hat could attract support near the rising wedge’s top trendline and breakout point.

A 澳洲幸运5官方开奖结果体彩网:breakdown below this level could see the S&P 500 revisit lower support around 5,670, where a trendline sits near several 澳洲幸运5官方开奖结果体彩网:peaks and troughs within the rising wedge pattern between July and Oc🌄tober.

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