S&P 500 — Straight rally or pullback then new high or straight rally? [Video]

💡 DMK Insight

The S&P 500’s current momentum raises a critical question: are we due for a pullback? Traders should be on high alert as the index approaches key resistance levels. If we see a dip, it could be a classic buy-the-dip opportunity, especially if it holds above recent support. However, if momentum continues unabated, we might see a rapid ascent towards new highs, which could trigger FOMO among retail investors. Keep an eye on the 4,400 level; a break above could signal a strong bullish trend. Conversely, a pullback to around 4,350 could provide a solid entry point for those looking to capitalize on the upward trajectory. Here’s the thing: while many are optimistic, it’s worth questioning whether the current bullish sentiment is sustainable. Economic indicators, like inflation and interest rates, could play a significant role in shaping market behavior. Watch for volatility spikes, as they could indicate shifts in trader sentiment. Overall, the next few trading sessions will be crucial in determining the S&P 500’s path forward.