Go long on SPX with $7,570 target as tech demand is back

The S&P 500 Index (SPX) is picking up the pieces as June winds down, recovering from the mid-month jolt that sent shockwaves through the financial world. The rebound is gaining traction, fueled by a fresh wave of interest in the tech sector—which is back to playing the role of market bellwether after the recent shakeout. Although caution still lingers, price dynamics suggest that bears are losing their grip and demand is slowly creeping back.

Technicals back up the recovery story. After falling into the red in early June, the Chaikin Oscillator—a pulse check on money flows—has reversed course and is now holding above the zero line. This is a clear signal that buying volume is starting to outweigh selling pressure, with capital beginning to seep back into the market. Still, the indicator's climb is modest compared to May's peaks, a reminder that investors are testing the waters rather than diving in headfirst.

Meanwhile, the Moving Average of Oscillator (OsMA) bar chart is still flashing red, officially pointing to bearish dominance. But here's the twist: after the extreme plunge on June 11, these bars have been shrinking in size—a telltale sign that downward momentum is fading. In other words, sellers are running out of steam.

On the fundamental side, the market is drawing comfort from the US-Iran thaw and the renewed appetite for tech and semiconductor names. Nevertheless, the skies aren't entirely clear. Bank of America is sounding the alarm on a possible three-wave correction this summer, which could knock the index down to the $6,850–$7,200 range. And let's not forget the upcoming US jobs report—it may easily throw a spanner in the works and send volatility soaring.

For those ready to make a move, pay attention to the trading plan down below:

Buy SPX at current levels near $7,445 and expect continued growth. Place Take Profit at $7,570. Set Stop Loss at $7,350.

This forecast is valid from June 30 till July 7, 2026.