Over the past week, the S&P 500 Index (SPX) has been trading in a tight range between $7,400 and $7,550—just a stone's throw from its all-time highs. But what's moving the needle? A three-pronged cocktail: Federal Reserve (Fed) monetary policy expectations, the tech earnings season, and the market's shifting risk appetite.
On the fundamental front, the US economy is holding up better than feared. Yes, the labor market is cooling a bit, though consumers are still spending, and inflation is slowly loosening its grip. This is the textbook recipe for a "soft landing": price pressures ease without the American GDP cratering. For equities, things are about to get as good as they sound, enabling companies to keep their financial engines running smoothly without a sharp deterioration in business conditions.
Turning to the charts, SPX continues to trend higher with conviction. The Relative Strength Index (RSI) is camped above 50, a clear sign that bulls are still calling the shots, with no glaring signs of overheating. In the meantime, the MACD Indicator is sitting comfortably in the green, adding more weight to the bullish argument and suggesting that there is some gas left in the tank. The first stop on the upside? It will definitely be the $7,620 level—a retest of the index's all‑time high.
The ultimate recommendation is to buy SPX at the current price ($7,500), aiming to reach $7,620 within several weeks. To limit losses if the market goes against us, place a Stop Loss order just below support, i.e., at $7,450.
This content is for informational purposes only and is not intended to be investing advice.
