S&P 500 Heading Towards Resistance in the 5550.0 - 5110.0 Channel

Currently, the S&P 500, the main index of the U.S. economy, is in correction around the 5337.0 level. With the end of the corporate earnings season, the index's performance now heavily depends on the bond market and macroeconomic statistics.

Yesterday, data released in the U.S. showed a drop in sales of existing homes from 4.22 million in the previous month to 4.14 million in April, below the expectation of 4.21 million. Quotes were supported by the reduction of the 30-year mortgage rate, according to the Mortgage Bankers Association (MBA), from 7.08% to 7.01%, along with the increase in the mortgage market index from 198.1 points to 201.9 points.

The bond market has stabilized a bit. For the second consecutive week, major debt securities did not show an upward trend. Yesterday, the 30-year bond yield fell to 4.635% from 4.818% in the last issuance. The 10-year bond yield was 4.433%, instead of 4.502%, and the 20-year bonds traded at 4.641%, down from 4.690% on Monday.

Among the growth highlights in the index are First Solar Inc (NASDAQ:FSLR). (+18.69%), Moderna (NASDAQ:MRNA) Inc. (+13.67%), Analog Devices Inc (NASDAQ:ADI). (+10.86%), and Enphase Energy (NASDAQ:ENPH) Inc. (+8.73%). On the other hand, the negative highlights were Target Corp. (NYSE:TGT) (-8.03%), Lululemon Athletica (NASDAQ:LULU) Inc. (-7.23%), and Freeport-McMoran Copper & Gold Inc (NYSE:FCX). (-5.69%).

Support and Resistance Levels
On the daily chart, the index quotes are moving towards the resistance line of the 5550.0–5110.0 channel. Technical indicators continue to strengthen the buy signal: the fast EMAs on the "Alligator" indicator are moving away from the signal line, and the AO histogram, which is in the buy area, is forming ascending bars.

Supports: 5277.0, 5110.0
Resistances: 5360.0, 5550.0

Trading Scenarios
If the asset's growth continues and the price consolidates above the resistance level of 5360.0, buy positions will be favorable, with a target of 5550.0. I recommend setting the Stop Loss at 5300.0. The realization period is 7 days or more.

On the other hand, if the asset reverses and declines, and the price consolidates below the support level of 5277.0, sell positions will be recommended, with a target of 5110.0. In this case, the Stop Loss should be set at 5330.0.