Staying below S&P’s 2040 Heralds a Shift in Major Trend

current rally is testing formidable resistance near 2020-2040 in the S&P 500 index. If last week’s rally were to continue, the index must break through these levels to maintain upside momentum. However, the fact that the market is overbought as it faces key technical resistance does not favor a sustain break to the upside. Staying below those levels heralds a shift in the major trend.