Investing in SPX during correction with 6,700 in sight

The S&P 500 Index (SPX) outlook for April looks moderately positive but volatile. The first quarter of 2026 was an uphill battle, with quotes falling by 4.6% and 7%. A corrective rebound is now underway. Market participants are currently betting on SPX’s attempt to climb to 6,700 and beyond. Historically, April has been the index’s strongest month, delivering average gains of around 1.4%.

Quarterly reports from major banks (JPMorgan, BofA, etc.) and tech giants (Microsoft, NVIDIA) are now taking center stage. Their earnings are widely expected to increase by 12%–17% year-on-year, providing fuel for the S&P 500’s rally. Steady investment flows into the artificial intelligence (AI) segment are helping the tech sector to stay afloat, preventing the index from a deeper decline.

However, one rotten apple can spoil the barrel. Morningstar experts warn that the current rebound in SPX could be temporary—merely a modest uptick within a broader bearish trend. Analysts do not rule out the possibility of quotes hitting 6,000 by May 2026. The Middle East crisis remains at the heart of the matter. Ongoing tensions have pushed crude prices to $110 per barrel, reinforcing inflation concerns and weighing on corporate margins.

Another factor to consider is the Federal Reserve’s (Fed) monetary trajectory. US officials are now hinting at only one rate cut this year. Elevated borrowing costs and 10-year Treasury yields at 4.5% limit the S&P 500’s growth potential.

Within the next month, the index is likely to move in sawtooth waves, but keep your eyes on the 6,700 level. If SPX settles above this threshold, the uptrend could continue. Otherwise, prices may slide in May to test the psychologically important 6,000 support.

The overall recommendation is to buy SPX. Profits should be taken at 6,700. Stop Loss could be set at 6,450.

The volume of the open position should be calculated so that the potential loss (protected by a Stop Loss order) does not exceed 1% of your deposit. If your account balance does not allow opening a position of this size, it is better to avoid entering the market on this signal and wait for other trade options that meet low-risk criteria.