Heavy Resistance Level Up Ahead for S&P

$SPY is heading into some heavy resistance areas as the price levels gets back up to the 2023 and 2022 highs around 455-460. This highs represent topping points in the market and will provide key resistance levels. I would not expect much more fast pace upside in the market while we are within these levels. Even fact being bullish here is looking week given the risk/reward. The bulls are looking at a 2% upside move to the all-time highs from 2022, after the market rallied over 10% in 4 weeks. A break of resistance would put the SPY over 12 for the month and at all-time highs.

It Happened in 2022

You can see from the chart below, this similar situation happened in 2022, the market rallied over 8% straight up to the highs, where it dipped before setting the new highs only to drop again. This is very similar to what we are seeing now, with a strong rally off a trendline towards new highs. It created chop for over a few weeks with a slightly break to the highs only to see a decline of 20%.

Next Trade

Looking at where we are and came from the bull side does look exhausted and a pullback would make sense and help. Any longs or profits should be protected with limited upside over the next few weeks. A break above the new high would be very bullish but would need to see that first and see it sustained.

Key Level to watch 455.13 and 446 breaks of these levels will indicate next move. 446 break is bearish, 455.13-457 is bullish

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