The stock is testing the top of this summer’s range, a key resistance level that could help determine the timing of the rally. The S&P 500 index rose above the key 4,177 level on Monday but traded below it in the afternoon. That level is the high the index hit on June 2. “This was the brightest level on the chart, and it peaked just before the June CPI print for May came out, which has been a big hit. The S&P 500 index hit a low of 3,636 on June 17 before edging higher, said Ari Wald, technical analyst at Oppenheimer. The Nasdaq 100, represented by the Invesco QQQ Trust ETF, has been trading above its June high. “Whenever you revisit previous highs, it’s important to see if sellers get back there. , or whether it pushes the door to a higher price. I think it’s important that S&P cash holds for 8 days [moving average] it’s 4,107 Friday,” said Scott Redler, partner at T3Live.com, who said the move helped boost the stock early Monday because “there were a lot of short sellers and arbitrageurs.” “But the market gave up early and mixed gains in Monday afternoon trading. The S&P 500 Index was mostly flat at 4,143. Redler said despite the S&P 500’s first run. at the June high has been rejected, he expects it could make another move after the release of the consumer price index on Wednesday – if it matches expectations or is a little softer . compared with June’s 9.1% gain. “It’s very important. If we get a hot CPI report, then I think the market will retreat pretty quickly,” said Redler. If the S&P trades above and holds 4.177 to 4,180, there could be another test quite briefly around 4,220 – a resistance level that was also a congested area in February. Wald said that, for him, the next important level would be around 4,300. The 200-day moving average is currently at 4,336 and he hopes that could prove a major resistance area The 200-day moving average is simply the average of the 200 past closes of an index or a stock. At this level, it is considered to be in a downtrend.Strategists expect that the market has bottomed in June but it could shake and go lower between September and October. before moving higher later in the year. “For the more tactically oriented, we loosely say drop around 4,300 and buy back at Tru. 50-day moving average,” said Wald. It currently stands at 3,945 but could be at 4,000 by the time the index moves up in 200 days. Wald said he is also watching the surrender of the bears. He expects the market to “break out” in the fourth quarter. BTIG technician Jonathan Krinsky is watching 4,177 and sees the market hitting major resistance as it approaches 4,200. “We have to admit that a close above 4.231 (50% retracement) would be a big hit for the bears case,” Krinsky said in a note. He added that since 1950, there has never been a bear market rally that broke through the 50% retracement level and then went on to make new cycle lows. “To be clear, a close above 4231 won’t mean we’re immediately going to the upside and buying everything as there are still plenty of negative divergences and overbought conditions,” Krinsky said.