S&P 500 futures have returned to a higher level after bouncing back from a demand zone between 6,785 and 6,811. Prices are currently fluctuating around the 6,921 central pivot. After last week’s jump from this demand zone, prices rose during the Asian session and gained more ground in the London session. As the New York market opened, prices remained above the 6,921 pivot. This level has previously marked where the market accepted or rejected prices. Staying above this pivot indicates short-term control has shifted back to the upper range, setting the stage for movement towards the next group of key reference levels.

Price Behavior Focus

When prices are above 6,921, we could see movement towards the 6,937–6,974 zone. Here, previous supply levels and short-term extensions will face testing. This zone is more of a checkpoint to monitor rather than a target, with an emphasis on how prices behave. The 6,921 level is critical: staying above it supports a continuous upward trend and opens the door to higher levels. If prices drop below it, this may signal rejection, leading to movement back towards the 6,906–6,869 area. Right now, we are concentrating on how prices react at these key structural points. S&P 500 futures are consistently above the key 6,921 pivot as we approach the last trading week of the year. This stability follows a rebound from the demand zone near 6,800 last week. The recent November 2025 CPI data showed a manageable inflation rate of 3.0%, which helps ease inflation concerns for the time being. Given the market’s hold on this pivot, we are using 6,921 as a clear guideline for short-term trades. Traders might consider buying short-dated call options targeting around 6,974 or selling put spreads below 6,900 to profit from premium collection. This optimism follows the Federal Reserve’s recent choice to keep interest rates steady and hint at a potential easing cycle in 2026.

Resistance Zone Testing

Our immediate focus shifts to testing the 6,937–6,974 resistance zone, expected to be challenged in the coming days. Historically, this time is known for the “Santa Claus Rally,” where the S&P 500 has averaged a gain of 1.3% during the final week of December and the first two days of January since 1950. With the VIX staying low around 13, conditions look favorable for a gentle rise into year-end. However, we need to monitor any failure to maintain levels above 6,921, as this could signal a loss of upward momentum. A dip below this pivot might quickly push prices back to the 6,869 area, undermining the current bullish trend. Traders using derivatives may respond by buying puts for protection or initiating short futures positions if this support level falters. The key strategy is to observe how prices behave at these levels, rather than guessing what might happen next. The addition of 185,000 jobs reported for November 2025 supports a “soft landing” narrative, reminiscent of the market rally seen in late 2023. This environment bolsters the current market structure, though we remain aware that trading volume tends to be lower during this holiday week. Create your live VT Markets account and start trading now.

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