As of April 24, 2026, the S&P 500 Index (SPX) has flattened out near its historical highs.
Let’s step back and look at the broader picture to shape our trading strategy. Here are some key factors to consider:
Geopolitical landscape. Market signals are mixed. News of a three-week extension of the Lebanon-Israel ceasefire lowered the risk premium but also calmed volatility.
Earnings season. Traders are in anticipation of major tech giants' reports. Next week, Apple, Microsoft, Amazon, and others are due to present their quarterly results, creating a lull before the storm. This time, ambitious talk about artificial intelligence (AI) developments will no longer suffice. Investors aren't looking for lofty speeches or big promises; they want to see how enormous capital investments—forecasts point to $645 billion in 2026—will translate into real money and profit growth. The stakes are high, yet large banks remain calmly optimistic: JPMorgan has recently raised its year-end S&P 500 target to 7,600.
From a technical standpoint, the Relative Strength Index (RSI) is flying above 80—a clear signal of a potential short-term correction or sideways movement to work off some excess steam. This reading is considered extreme, as overbought conditions typically begin ten points lower, at 70. In other words, the index’s recent rally has been remarkably fast.
The overall recommendation is to sell SPX. Profits should be taken at 7,050. Stop Loss could be set at 7,150.
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.
This content is for informational purposes only and is not intended to be investing advice.
