Aim for 4,000 amid a bullish technical setup

• S&P 500 futures are heading higher amid a bullish crossover on the 4-hour chart.
• Reflation operations will continue to favor riskier assets.
• The RSI is holding firm just below the overbought region.

The futures of the S&P 500 is it so flirting with all-time highs just above the 3,900 point level, as the bulls continue to benefit from optimism over US stimulus and renewed reflation prospects.

The bulls have extended the move to the upside after the breakout of the inverted shoulder-head-shoulder pattern on the four-hour chart seen last Thursday.

The measured target is seen at 4,010 points, with a bullish crossover confirmed today that could provide that additional excitement to buyers to hit new all-time highs. The 50-SMA has crossed up to the 100-SMA, validating the bullish formation in said time frame.

Before that, the psychological level of 3,950 points could offer some resistance on the upward path of S&P 500 futures.

Looking at the 1-hour chart, S&P 500 index futures have confirmed a death crossover. early in the Asian session.

The 50 hour moving average has crossed the 200 hour moving average down, which suggests that there is more room to the downside in the short term.

Any corrective pullback could find strong support at the bullishly sloping 21-hour SMA at 3.876. Lower down, the pattern’s resistance, now turned into support about 3,840, could challenge the commitment of the bears.

All in all, the path of least resistance looks to the upside, supported by the RSI holding firmer just below the overbought region near the 68 point level.

S&P 500 futures 4-hour chart