Intermediate-Term Technical Indicators Signal Bullish Momentum Across Major Indices

A comprehensive technical review of major U.S. equity indices indicates a robust intermediate-term bullish bias, supported by consistent price action and momentum indicators. The S&P 500 closed above 5,250 on December 13, marking a 7.2% gain from its November low and confirming a breakout from a long-term consolidation zone. Similarly, the Nasdaq Composite surpassed 17,000, achieving its highest level since April 2024, with a 6.8% rise over the same period. The Relative Strength Index (RSI) for the S&P 500 stands at 64.3, indicating strong upward momentum without overbought extremes. On a shorter-term scale, the 50-day moving average has remained below the 200-day moving average—reinforcing a bullish crossover signal that occurred in late November. This alignment suggests a sustained upward trend, with price action now testing resistance at 5,375, a level previously breached in early 2024. Volume data further supports the bullish case, with average daily trading volume on the S&P 500 rising 15% above its 30-day average during the past two weeks. This expansion in volume during upward moves reflects institutional participation and reduced distribution pressure. The advance-decline line has also demonstrated a positive divergence, with new highs outpacing new lows by a 3.1-to-1 ratio across the NYSE and Nasdaq. Market participants, particularly hedge funds and algorithmic traders, are adjusting positioning to reflect the intermediate-term optimism. Equity derivatives markets show increasing call option activity, with the put-call ratio falling to 0.68, the lowest level since August. Investors in technology, consumer discretionary, and healthcare sectors are benefiting most from this shift, as these groups are leading the current rally.