For about two years, between March 2020 and January 2022, SPX was in a bullish marathon. The support level as of March 2020 was $2210. The rally peaked at $4822 in January 2022. This price stands as the all-time high for the stock index.
Despite price reaching the all-time high in 2022, last year was a bad year for SPX investors as price went as low as $3488 in October 2022 as a result of the bearish turn. That low was 2022’s support level. 2023 has shown a bit of hope as there has been a bounce from 2022’s close of $3833. SPX opened in 2023 at $3845 and is currently at $3969.
On the daily chart, RSI indicates that price was oversold as of October 2022. This might be the reason for the recent rally. This oversold position may be able to create a bullish force that in the long run can push SPX above the all-time high thereby creating a new all-time high. However, in the short term, we might be seeing price rally above $4200 in the coming weeks.
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