S&P500, Time frame: daily, Tools: SMA 100S&P500, Time frame: daily, Tools: SMA 100

S&P 500 Technical Analysis:

The index advanced 0.75% in yesterday’s session, closing near 7,774. From a technical perspective, this marks a breakout above the resistance zone of a continuation head-and-shoulders pattern. Continued trading above this zone would point to further gains towards a minimum target near 8,030, based on the pattern’s measured price target.

Meanwhile, the right shoulder low near 7,610 will serve as the stop-loss zone. Prices remain above all moving averages, including the 100-day SMA, supporting the continuation of the uptrend.

S&P 500 Fundamental Analysis:

The index is trading at record levels, supported by continued strength in the technology sector, gains in tech stocks and declining oil prices. Investors nevertheless remain focused on the Federal Reserve’s meeting minutes for insight into the outlook for interest rates and inflation. Bond yields also remain in focus as they continue to move higher, reaching their highest levels in more than 20 years.

In conclusion, markets remain optimistic about AI stocks but cautious about Middle East talks and continued increases in bond yields.