The S&P 500 continues to exhibit strong bullish momentum, maintaining a well-defined uptrend since early April. Recent gains have been supported by favorable technical patterns, including a confirmed failure swing and a Golden Cross formation, which point to sustained upside potential. Key momentum indicators also remain firmly in bullish territory.
While several high-profile economic releases are scheduled this week—including US labor data and central bank rate decisions in Canada and Europe—price action remains the primary focus. Traders will be closely monitoring whether the index can decisively break above the key resistance at 5995.59, which could open the path to higher technical targets.
High Impact Economic Events
Wednesday 04:30 am (GMT+3) – Australia: GDP q/q (AUD)
The S&P 500 has maintained a structurally sound uptrend since bottoming at 4800.73 on April 7, characterized by a consistent sequence of higher highs and higher lows—hallmarks of sustained bullish momentum. The initial impulse came from a Long Bullish Body candlestick, followed by a failure swing pattern in which the subsequent low at 5100.90 held above the prior trough of 4800.73, thereby confirming a directional shift to the upside.
Technical confirmation was further reinforced by a “Golden Cross” configuration, as the 20-period Exponential Moving Average (EMA) crossed above the 50-period EMA—a classic reversal signal that underscores strengthening trend conditions.
Momentum indicators corroborate this bullish shift. The Momentum Oscillator has moved decisively above the 100 baseline, suggesting an increasing upside drive, while the Relative Strength Index (RSI) continues to hold above the neutral 50 level, signaling a firm positive bias.
A clean breakout above the key resistance level of 5995.59 would open the door for an extension of the rally, potentially targeting higher price zones in the near term.
Key Resistance Levels
Should the buyers maintain market control, traders may direct their attention toward the four potential resistance levels below:
5995.59: The initial resistance level is established at 5995.59, which mirrors the peak reached on May 29.
6181.21: The second price target is set at 6181.21, reflecting the weekly resistance, R3, calculated using the standard Pivot Points methodology.
6349.35: The third price objective is observed at 6349.35, corresponding to the 261.8% Fibonacci Extension drawn from 5995.59 to 5742.21.
6724.58: An additional upside target is projected at 6724.58, mirroring the 423.6% Fibonacci Extension drawn from 5995.59 to 5742.21.
Key Support Levels
Should the sellers regain market control, traders may consider the four potential support levels listed below:
5903.06: The initial support level is seen at 5903.06, corresponding to the weekly Pivot Point, PP, calculated using the standard methodology.
5742.21: The second support level is estimated at 5742.21, representing the swing low marked May 23.
5625.19: The third support level is identified at 5625.19, reflecting the weekly support, S3, estimated using the standard Pivot Points methodology.
4800.73: An additional downside target is 4800.73, mirroring the daily low marked April 7.
Fundamentals
US stocks rallied on Tuesday as a surprise uptick in job openings helped ease investor concerns about the economic impact of President Donald Trump’s ongoing tariff standoff. The S&P 500 advanced, led by gains in tech—particularly Nvidia, which rose nearly 3%—and energy stocks, which tracked a rebound in oil prices. Meanwhile, Treasuries fell, and the US dollar strengthened.
The unexpected labor data reinforced the Federal Reserve’s view that the job market remains resilient, bolstering the case for holding interest rates steady. This optimistic read contrasts with recent global concerns, including the OECD’s downward revision of growth forecasts, citing trade tensions as a key drag on the world economy.
On the trade front, the US has reminded partners of an approaching negotiation deadline, while Commerce Secretary Howard Lutnick expressed optimism over a potential agreement with India.
Conclusion
With the S&P 500 firmly anchored in a bullish structure, technical signals continue to favor the upside as long as key support levels hold. While upcoming economic releases may add short-term volatility, the focus remains on whether price action can sustain momentum above 5995.59. A confirmed breakout would likely reinforce the prevailing trend, keeping higher resistance levels in view for market participants.
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