Technical analysis - S&P 500 close to record high

This week we will be focusing on the S&P 500, as we approach the start of earnings season. What has been interesting with this US benchmark is resilience in the face of financial market stresses, with Government bond yields falling and risk aversion apparent the S&P has made new all time high of 2139.5, slightly taking out the May 2015 high of 2136.9.

As with any test of a previous high this may prove to be a key resistance zone. Should this be true short term support could be found at the Fibonacci levels as on the chart. Another interesting point whilst facing this potential resistance zone is the bearish divergence on the RSI which could be suggestive of a weakening of this move to the up side, however it is certainly worth a note that the high has been breached and that a higher high confirms a trend. With earnings season ahead of us, this could be the catalyst to push prices higher or push them lower. 

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