The S&P 500 (SPX) enters 2025 on its best two-year run since the late 199ꩲ0s.

The 澳洲幸运5开奖号码历史查询:large-cap index rose 23% gain last year after surging 24% in 2023, as the 澳洲幸运5开奖号码历史查询:artificial intelligence (AI) boom an🎃d first interest rate cuts since 2020 helped drive stocks higher.

While the AI narrative and 澳洲幸运5开奖号码历史查询:expected rate cuts will likely continue to support large-cap stocks over the next 12 months, 澳🐻洲幸运5开奖号码历史查询:investors will als𝓀o be closely watching the impact of the incoming Trump administration’s policies, particularly in relation to tariffs, while also monitoring ge﷽opolitical tensions in Russia and the Middle East.

The S&P 500, which closed out 2024 on a four-session losing streak, was up 0.5% at 5,910 iওn the opening minutes of trading Thursday.

Below, we take a closer look at the S&P 500’s chart and identify important 澳洲幸运5开奖号码历史查询:technical le𒉰vels that investors may be watching as the first quarter gets unde🌊rway.

Head and Shoulders Pattern Emerges

Since early November, the S&P 500 has formed a peak, a higher peak, and then a lower peak, carving out a 澳洲幸运5开奖号码历史查询:head and shoulders pattern, a classic chart formation that indicate💛s a potential market top.

Moreover, the index fell below the closely watched 澳洲幸运5开奖号码历史查询:50-day moving average last week, though recent selling has occurred on lower-than-average end-of-year trading volume.

Let’s take a closer look at three major levels where the S&P 500 could encounter support during 澳洲幸运5开奖号码历史查询:pullbacks and🍌 also point out several key overhead areas to monitor if the index resumes its longer-term uptrend.

Major Support Levels to Watch

Firstly, it’s worth keeping an eye on the 5,875 level. This location on the chart could provide support near the head and shoulders’ neckline that joins the October peak wit🃏h troughs that f෴ormed in November and December.

A decisive 澳洲幸运5开奖号码历史查询:breakdown below this area would confirm the head and shoulders top and could see a decline to the next lower support level around 5,670. Investors who trade the index may look for buying opportunities in this region near the prominent July 澳洲幸运5开奖号码历史查询:swing high and early-October low.

Further downside opens the door for a retest of the 5,445 level, a location likely to attract support near a 澳洲幸运5开奖号码历史查询:trendline that lin꧙ks a range of similar chart points between June and September.

Key Overhead Areas to Monitor

If the S&P 500 resumes its longer-term uptrend, investors should initially monitor the 6,090 area. This level may may provide overhead 澳洲幸运5开奖号码历史查询:resistance near the upper range of a week-long 澳洲幸运5开奖号码历史查询:consolidation period that formed shortly after the index reached its 澳洲幸运5开奖号码历史查询:all-time high (ATH) in early December.

To forecast a bullish 澳洲幸运5开奖号码历史查询:price target above the ATH, investors can apply the bars-pattern tool. This technique involves extracting the price bars that comprise the post-election rally from early November to early꧋ December and repositioning them at the head-and-shoulders’ neckline, which forecasts a target of around 6,290.

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As of the date this article was written, the author does not own any of the above securities.