S&P 500 fails to break out of indecisionUS SP 500 CFDFOREXCOM:SPX500FOREXcomOver the last few trading sessions, price variation around the SPX index has remained close to 0.3% on average. This has started to highlight more evident indecision in the chart’s movements, which for now do not show significant short-term trend strength. In addition, after updates emerged about a possible reactivation of tensions between the United States and Iran, this catalyst could once again affect confidence in market demand. In this scenario, the lack of a clear recovery in the index could continue to highlight an important phase of indecision in S&P 500 movements over the next few trading sessions. Sideways range remains consistent: For several weeks, average movements in the SPX have started to form an increasingly evident medium-term sideways range, with a ceiling near 7,600 points and a floor around 7,200 points. So far, price has not managed to define a clear short-term direction. As long as a more relevant buying or selling bias does not appear on the chart, the current sideways range could remain the most important structure for the next few trading sessions. RSI: The RSI indicator line continues to move consistently very close to the neutral 50 line. This suggests a balance in the average bullish and bearish impulses of the last 14 sessions. For this reason, the indicator continues to point to a phase of indecision that could remain in place over the next few sessions if this behavior continues. MACD: A similar scenario can be seen in the MACD histogram, which also maintains relevant movements around the neutral 0 line. This suggests a balance of strength in short-term moving averages. This reading also reflects the importance of an increasingly evident neutral bias over the next few trading sessions. Key levels to watch: 7,600 points – Main resistance: This zone corresponds to the historical highs of the SPX and currently acts as the most important bullish barrier to watch. Price movements above this level could reactivate a buying bias and open room for a possible extension of the long bullish trend line, which remains the dominant long-term technical pattern. 7,400 points – Near-term barrier: This zone corresponds to a recent retracement, sits in the middle of the sideways range, and coincides with the barrier marked by the 50-period simple moving average. If the SPX price remains too close to this level without managing to move clearly away from it, it could continue to reinforce an indecision scenario and keep the sideways range as the dominant pattern over the next few sessions. 7,200 points – Key support: This level corresponds to lows from previous weeks and coincides with an area near the 23.6% Fibonacci retracement of the most relevant move on the chart. For this reason, it represents the most important bearish barrier to watch. Price movements below this level could reinforce more consistent selling pressure and open room for a relevant selling bias over the coming weeks. Written by Julian Pineda, CFA, CMT – Market Analyst