Mid-Week Technical Outlook: SPX500_m eyes 2023 high

• SPX500_m up roughly 9% in November

• Key US data and Powell speech may rock index

• Prices trending higher with bulls eyeing 2023 high

• Watch out for RSI which remains in overbought territory 

The SPX500_m is on track for its biggest monthly gain since July 2022 and fourth-best month in the last 10 years!

November has been a stellar month for the stock index which is currently up roughly 9% as of writing.

Equity bulls remain empowered by growing speculation around the Fed cutting interest rates in 2024. With the upside momentum in full swing after prices blasted through a previous resistance level, the next key level of interest may be the 2023 high.

Should economic data and dovish remarks from Fed officials reinforce bets around Fed cuts next year, this could keep SPX500_m bulls in a position of power.

Taking a look at the technical picture, prices are firmly bullish on the daily charts. There have been consistently higher highs and higher lows while prices are trading above the 50, 100 and 200-day SMA.

It is a similar story on the weekly timeframe with prices approaching the 4600 resistance level. Beyond this point, the next key level of interest can be found at 4820 – a level not seen since January 2022.

One key thing that stands out in the daily timeframe is the Relative Strength Index (RSI) which remains around 70. With prices deep in overbought territory, a technical throwback could be around the corner before prices push higher.

• Bulls remain in control above the 4525 level with the next key point of interest at 4611.

• Should prices slip back under 4525, this may trigger a decline toward 4500 and 4470, respectively.