SPX sell-off targets $7,000

As the trading week winds down to April 17, the S&P 500 Index looks poised for moderate gains, with a real shot at notching new record highs. The actual stage was set yesterday, when SPX did something historic—it pierced the $7,000 ceiling for the very first time, finally closing at $7,023. 

The market is now making a big bet on successful peace talks between the United States and Iran, which are likely to take place in Pakistan. Any tangible de-escalation agreement regarding the Strait of Hormuz would send the index into overdrive. But be warned: a breakdown in negotiations with Tehran could spark a rush for the exits, triggering a sharp pullback to $6,800. 

Strong results from major banks have already thrown fuel on the SPX rally. Earnings season for the first quarter (Q1) of 2026 is off to a flying start, with tech providing a rock-solid floor and financials running hot on its heels—leaving investors eager for the next wave of upbeat news.

Here's what a few banking heavyweights have delivered so far:

Morgan Stanley (MS). Earnings surged 29% to $5.57 billion ($3.43 per share), fueled by record-breaking performance in equities trading (+25%) and asset management. The revenue came in at $20.58 billion. 

Bank of America (BAC). Net income climbed 25%, with EPS landing at $1.11—well above the $1.01 forecast. Every single business segment posted growth.

All eyes are now on the tech sector, which market players expect to remain the index's primary driver. Projections call for tech earnings to jump between 23.7% and 45.0% year-over-year. Strip away the sector, and the S&P 500's overall profit growth would shrivel from a healthy 11%–13% down to just 5%. 

The market is also obsessed with the artificial intelligence (AI) supercycle. The trillion-dollar question: will all that massive capital spending finally turn into real revenue? Only time will tell.

A well-worn technical rule says that when the S&P 500 index breaks into new all-time high territory, it often comes back to test the level it just broke. In this case, such a magnetic target would be $7,000.

The ultimate recommendation is to sell SPX. Place Take Profit at $7,000. Set Stop Loss at $7,050.

Calculate your open position so that a potential loss (protected by a Stop Loss order) is limited to 1% of your deposit. If your account balance does not allow entering a position of this size, it is better to skip the trade and wait for other market signals that meet low-risk criteria.