Charts Predict: S&P Rally is Hitting a Ceiling

The recent rally in the S&P 500 could be over as the index is struggling to break above a key resistance level, Royce Tostrams, technical analyst from Tostrams Groep, told CNBC.

“The market is running into its falling 200-day moving average and that normally suggests limited upside potential,” Tostrams said.

The S&P's rising trend does appear to be in tact in the short-term, however, Tostrams told CNBC. But “there’s a lot of overhead resistance in New York (and) the rally is running out of steam,” he added.

If the index does manage to break above its falling 200-day moving average it could rise above 1,000 points, according to Tostrams.

- Watch the full interview with Royce Tostrams above.

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