The S&P 500 on the H4 time frame was in a down trend until a lower bottom was reached on 20 September at 4306.5. After the lower bottom, bulls gathered strength and the price broke through the 15 and 34 Simple Moving Averages. The Momentum Oscillator confirmed the bullish momentum by breaking through the baseline into positive terrain. A possible critical resistance level was formed when a higher top was recorded on 23 September at 4466.8. Bears then tried to pull the market lower but bulls stopped them near a support level at 4422.9.
On 27 September the S&P 500 managed to break through the critical resistance level at 4466.8 and three possible price targets was considered from there. Attaching the Fibonacci tool to the higher top at 4466.8 and dragging it to the bottom of the support level at 4422.9, the following targets was calculated. The first target was estimated at 4493.9 (161.8%). The second price target can be forecast at 4537.8 (261.8%) and the third and final target can be anticipated at 4608.9 (423.6%).
If the support level at 4422.9 is broken, the above scenario is no longer in valid and any open positons must be closed. As long as the bulls continue to dominate and demand overcomes supply, the outlook for the S&P 500 on the H4 time frame will remain bullish.