Buying SPX up to $7,518

The S&P 500 chart is caught between two phases. After a confident medium-term uptrend that carried the index through June, the market has drifted into a broad horizontal consolidation, showing subtle signs of localized pressure. Peaks have been getting lower—a classic warning that bulls are losing their grip.

For now, SPX is camped at a critical point where buying and selling interest appears to be evenly matched. It is a classic tug-of-war, with neither side willing to concede ground just yet. But make no mistake: this equilibrium is unlikely to last long.

June's powerful rally has given way to July's flat grind. What a difference a few weeks can make! After slicing through intermediate liquidity zones, the index is currently testing a major reversal area, with the price sitting directly on a horizontal support.

So, what are the key levels to watch? Here's the roadmap the market is offering:

Resistance: $7,494.50, $7,518.50, $7,542.00, $7,566.00, and $7,590.00.

Support: $7,478.50, $7,470.50, $7,447.00, $7,423.00, and $7,399.00.

Volume tells an intriguing story: bearish pressure seems to be waning near the current floor of $7,478.50. In other words, sellers may be running out of ammunition.

The MACD Indicator adds weight to this view. Though it is still in negative territory (the signal line at -3.00, the bar chart at 2.14), the oscillator is rising as it claws its way back toward zero. What does this mean? It signals a significant deceleration in downward momentum. More importantly, while the price has been falling, the MACD has refused to make new lows—a classic hidden bullish divergence that often precedes a reversal.

With strong historical support in this zone and the indicator signaling waning bearish power, the path of least resistance is upward.

Here's how we see it playing out: expect buyers to defend the $7,478.50 level with conviction. After a brief consolidation, a momentum rally should follow, with the first target at local resistance of $7,494.50. A decisive break above this threshold, coupled with a positive MACD bar chart, would confirm that bulls are back in the game. From there, $7,518.50 comes into play, and if demand stays robust, the index could charge toward the upper boundary of the July range at $7,542.00, where profit-taking may temporarily pause the advance.

The ultimate recommendation is to buy SPX. Lock in profits at $7,518. Place Stop Loss at $7,460.

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 you to enter a position of this size, it is better to skip the trade and wait for other market signals that meet low-risk criteria.