Technical Analysis: S&P 500 Tags Key Level, Risks Rise

The S&P 500 is sitting at all-time highs. Up a whopping 30% from the April 7th lows, investors are feeling the animal spirits. The stock market is rallying despite a slowing economy, tariffs and trade wars. Markets do have a history of climbing a wall of worry but it often ends in market collapse.

The S&P 500 just tagged major resistance at 6,280. This is a combination of two trend lines that are converging. Note the chart above.

Based on technical analysis, the risk of a market pullback is elevated due to this two factor resistance level.