S&P 500: New entry opportunities? Wall Street rally facing possible setbacks

S&P 500: New entry opportunities? Wall Street rally facing possible setbacks

According to a report from finanzmarktwelt.de, the November rally on Wall Street continued into the shortened trading week before Thanksgiving. All three major US stock indexes reached new monthly highs. The Nasdaq 100 even reached a new annual high, while the S&P 500 is only 1.10% short of its peak. Since the end of October, the US leading index has recorded a price gain of almost 11%. Market participants are speculating on several interest rate cuts in the coming year and further declines in inflation. This has left US stock markets visibly overbought and consolidation could be imminent.

According to experts, however, the euphoria on the US stock exchanges could mean that it becomes increasingly difficult to maintain the high pace. A continuation of the year-end rally is still possible, provided there is prior consolidation. The technical signs point to a breather in the S&P 500 and Co., which raises the prospect of potential setbacks.

The current rally on Wall Street has recently lost momentum, and the S&P 500 Futures Index is struggling with resistance at 4,570 points. If the index holds above this level, there could be a further increase towards the annual high. However, the S&P 500 will likely struggle to sustainably overcome the hurdle due to the overextended rally and overbought situation. Therefore, a pullback could be imminent. The resistance at 4,570 and 4,630 points should therefore be kept in mind.

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In summary, Wall Street's rally is losing momentum and consolidation could be on the horizon. Investors should keep an eye on technical indicators and resistance to be prepared for possible pullbacks.